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JOURNAL

OF THE

House of Representatives

OF THE

COMMONWEALTH OF KENTUCKY

FIRST EXTRAORDINARY SESSION OF 1956

Held in the State Capitol in the Capital City of Kentucky, at
Frankfort, in the Year of Our Lord 1956 and
in the One Hundred and Sixty-Fourth
Year of the Commonwealth

Begun on the Twenty-seventh Day of February, 1956, and
Adjourned Sine Die on the Eighth Day of March, 1956

DUNNE PRESS
PRINTERS TO THE COMMONWEALTH OF KENTUCKY
LOUISVILLE, KENTUCKY

JOURNAL OF THE SESSION
OF THE
HOUSE OF REPRESENTATIVES
OF THE COMMONWEALTH OF KENTUCKY

FIRST EXTRAORDINARY SESSION OF 1956

MONDAY, FEBRUARY 27, 1956
FIRST LEGISLATIVE DAY

At an Extraordinary Session of the General Assembly of the
Commonwealth of Kentucky, held at the Capitol in the City of Frank-
fort, and begun on February 27, 1956, and in the one hundred and
sixty-fourth year of the Commonwealth, in compliance with a procla-
mation issued by the Governor of the Commonwealth, the House of
Representatives was called to order by the Honorable Thomas P.
Fitzpatrick, Speaker of the House of Representatives.

Prayer by the Reverend Edward L. Tullis of the First Methodist
Church of Frankfort.

The roll was called. All present except Billington, Caudill, Cot-
tengim, Gullette, Melton, Nunnelley, Qualls, Reynolds, Searcy, Wathen,
and Weintraub, who were granted leaves of absence on motion of
Representative Morgan. ,

The Clerk read the following proclamation:

the proclamation of the Governor, A. B. Chandler, convening the
General Assembly of the Commonwealth of Kentucky into Extra-
ordinary Session at the seat of government, Frankfort, Kentucky at
7 p.m., CST, on Monday February 27, 1956 for the purpose of consider-
ing the following subject:

(1) To pass acts reorganizing and simplifying the state and local
government.

IN WITNESS WHEREOFP, I have hereunto
set my hand and affixed my offical seal.

Done at Frankfort this 27th day of February,
1956

(Signed) THELMA L. STOVALL

Secretary of State, Commonwealth of Kentucky
February 27, 1956

4 JOURNAL OF THE Feb. 27
TO ALL TO WHOM THESE PRESENTS SHALL COME:

WHEREAS, the present structure of the state and local government
of Kentucky obstructs the economic and effective man-
agement of state and local business; and

WHEREAS, bringing together the multiplicity of scattered boards,
commissions, departments and other agencies of the
state and local government into a systematic and orderly
plan is essential to effective administration at minimum
expense; and

WHEREAS, preparation of a budget to provide for the economical
financing of state and local services is dependent on prior
reorganization of the state and local government;

NOW, THEREFORE, in order to insure the people of the Common-
wealth a reorganized and efficient plan of government,
and in accordance with the power vested in me by
Section 80 of the Constitution of Kentucky to convene
the General Assembly into Extraordinary Session, as
Governor of the Commonwealth of Kentucky, I, A. B.
Chandler, do issue this, my proclamation, convening the
General Assembly of Kentucky in Extraordinary Session
at the seat of government at Frankfort, Kentucky, at
7 p.m., CST on Monday, February 27, 1956, for the sole
purpose of considering the following subject:

(1) To pass acts reorganizing and simplifying the
state and local government.

You will, therefore, in accordance with this proclam-
ation, assembly in Extraordinary Session at the seat of
government at Frankfort, Kentucky, on the day and hour
above written, to consider the subject herein mentioned,
and only said subject.

Done at Frankfort, Kentucky, this the 23rd day
of February in the year of our Lord, one thous-
and nine hundred and fifty-six, and in the year
of the Commonwealth the one hundred and
sixty-fourth.

(Signed) A. B. CHANDLER, Governor

(Signed) Thelma L. Stovall
Secretary of State

Feb. 27 HOUSE OF REPRESENTATIVES 5

Introduction of Resolutions

HR 1, by Representative Morgan: A RESOLUTION adopting
rules to govern the First Extraordinary Session of the 1956 General
Assembly.

Be it resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky:

That the rules of the House of Representatives of the 1956 Regular
Session of the General Assembly be adopted as the Rules of the House
of Representatives of the Extraordinary Session of the General Assem-
bly convened on February 27, 1956.

Representative Morgan moved adoption of HR 1. Adopted.

The Speaker announced that the Rules Committee serving during
Regular Session would continue during Special Sessions.

HR 2, by Representative Morgan: A RESOLUTION notifying the
Senate and. the Governor that the House of Representatives is or-
ganized.

Be it resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky:

That the Speaker of the House of Representatives be authorized
and directed to appoint a committee of seven members to notify the
Senate that the House of Representatives is organized and ready for
business, and that this committee meet with a like committee to be
appointed by the President of the Senate, and that said joint committee
then call on the Governor of the Commonwealth of Kentucky to notify
him that this General Assembly is duly organized and ready to receive
any message that he may desire to deliver, his fixing the time and
place.

Representative Morgan moved adoption of HR 2. Adopted.

Appointment of Committee

The Speaker apointed the following committee pursuant to HR 2:
Representatives Ray, Howard, Harris, Lowman, Tinsley, Isler and
Burnley.

Joint Session

The Committee appointed to wait upon the Governor reported
that the Governor was ready to address a Joint Session of the General
Assembly.

The Senate entered upon the floor of the House and the Honorable
Harry Lee Waterfield, Lieutenant-Governor and President of the
Senate, assumed the Chair and called the Joint Session to order.

6 JOURNAL OF THE Feb. 27

Prayer by Reverend Edward L. Tullis, of the First Methodist
Church, Frankfort.

Representative Morgan moved that the roll call be dispensed with.
Agreed.

The Committee appointed to wait upon the Governor appeared
with His Excellency, Albert B. Chandler, Governor of the Common-
wealth of Kentucky, who took his place at the Clerk’s desk.

The Governor addressed the Genera] Assembly as follows:

ADDRESS BY GOVERNOR A. B. CHANDLER BEFORE A JOINT
SESSION OF THE GENERAL ASSEMBLY OF KENTUCKY
MONDAY, FEBRUARY 27, 1956

Governor Waterfield, Speaker Fitzpatrick, members of the General
Assembly, friends: As I forecast when I came before you January 3,
I have again called you into extraordinary session. I wish to compli-
ment each and all of you for handling your affairs in a rapid manner in
order that we could get on to the problems which we thought could
be best handled in an extraordinary session.

As you know, the science of government is not an exact science.
It varies according to the views of those people who administer its
affairs. There is one area of government, however, on which all
students of government and all reasonable men agree. It is: The
departments and agencies necessary for the efficient operation of
government should be as few in number as is possible to perform the
assigned tasks.

In 1936, when I became Governor of Kentucky the first time, I
found it necessary to reorganize our government from top to bottom—
from stem to stern. The activities of government were pulled together
into a working arrangement which, at the time, was considered a
model of governmental organization and is still followed in many of
the states. This governmental set-up, created by the 1936 Legislature,
has been used by teachers and students of government, and several
other states have modeled their governmental organization on what is
known as the “Kentucky plan.” The framework of the 1936 Reorganiza-
tion Act is still in evidence in our government. Indeed, most of the
departments which were then created have been continued intact.
It is, therefore, unnecessary that the Reorganization Act of 1956 be
as drastic or as far-reaching as the Reorganization Act of 1936. It is,
however, important that the state government, at this time, be some-
what reorganized in order that we may bring into well defined de-
partments and agencies those functions of government which are inter-
related, but in some cases to separate functions which have grown in
stature to the point where they can best be handled independently or
separated from the original department in which they were established
in order that we may administer them as efficiently and as economically
as is possible.

Feb. 27 HOUSE OF REPRESENTATIVES 7

Important features of the 1956 Reorganization Act are these:

(1) The Superintendent of Public Instruction is permitted to
reorganize the Department of Education along lines which are thought
to be necessary to meet the tremendous responsibilities which must
be discharged by that department. In a subsequent Special Session I
will present to you a budget which is designed to lift our system of
education out of the hopeless situation which now confronts it. I have
said—and I want to repeat—that the Executive and Legislative branches
of the government will furnish the tools to the Department of Educa-
tion with which it can do a dramatic job, and the Department must get
its house in order to perform the task which lies ahead of it. The
people of Kentucky are entitled to value received for the enormous
amount of their tax money which will be spent for education during
the next four years. The reorganization of the department is essential
to the performance of its important and increased responsibilities.

(2) The scope of activities of the Department of Finance is
much broadened by the Act which will be presented to you. The State
Property and Building Commission is abolished and its functions
transferred to the Department of Finance.

A thorough study of the activities of the State Property and
Buildings Commission has convinced me that drastic action was re-
quired in connection with that agency of the government. It is prob-
ably true that the situation which I have inherited as Governor should
not be blamed on this agency of government, but rather should be
attributed to the people who operated the agency. However that may
be, I think it is essential that the work of this agency in building ad-
ministration, in buying, in record keeping, and in budgeting be tied
to the same kind of work now done by the Department of Finance.
As budgeting, purchasing, bookkeeping, and supervision of state
property are tasks already performed by the Department of Finance,
it is logical and economical that the entire activities of that Com-
mission be transferred to the Department of Finance.

In addition to the transfer of the State Property and Buildings
Commission, the proposed legislation also gives to the Department of
Finance, with the approval of the Governor, very tight and desirable
control of financing of public improvements by revenue bonds and,
it seems to me, that such control is long past due. At this very moment
the Governor, the State Fair Board, and everyone concerned with the
financial policies of the state are searching for a solution to the
dilemma which grows out of the construction of the new State Fair
facility in Louisville. In my view the operation of restaurants, ice
shows, football games, basketball games and the like are outside the
scope of prudent governmental activities. We have searched the
country for a man or a group of men who would take over the operation
of the state fairgrounds and guarantee to the Commonwealth a new
return of $400,000 a year, which is required to meet bond commit-
ments. We have consulted many people who are familiar with the

8 JOURNAL OF THE Feb. 27

operation of such activities and I regret to advise you that up to this
moment we have found no one who would undertake the operation on
the terms which, we feel, we must impose. Our only alternative is to
undertake the operation of the fairgrounds with State personnel—an
alternative which is distasteful to me—but I know of no other course
to be pursued.

It is clear to me—and I believe it is clear to everyone—that before
the Commonwealth of Kentucky enters upon an undertaking as vast
as the one I have described, a method of operation should be formu-
lated before the project is launched. Nothing should be left to chance.
Only by foresight can such dilemmas as are now presented be avoided.
The financial controls provided in this bill should guarantee that
future revenue bond financing be undertaken only after a sound and
feasible plan of bond redemption has first been contrived.

(3) In the 1956 Reorganization Act the Division of Personnel—
now within the Department of Finance—is made a Department. It is
believed that the personnel functions of the state government are of
such importance, at the moment, as to require the administration of
these functions by a separate department of the state government.
Other states in general have already adopted this plan. Even more
persuasive are the functions which probably will be added to this
department during this administration. As I have repeatedly stated
before, I hope that during this administration to place all state
employes under a merit system, and I stand ready to do this the
moment the various department heads advise me that their depart-
ments are ready for this step. And logically, these activities would be
placed in the Department of Personnel.

(4) The 1956 Reorganization Act creates a Highway Commission
which is advisory only and which is composed of eight Advisory Com-
missioners to be appointed from highway districts created by the
Commissioner of Highways. These Advisory Commissioners will
ascertain the condition and needs of their respective districts as relates
to highways and advise the Commissioner in that regard. It is, I think
important that District Engineers who are, or should be, professional
men, be relieved of semi-political responsibilities. It is equally essential
that there be someone closer to the people of Kentucky than Frankfort
to discuss with them their highway problems. The Commissioner of
Highways spends most of his time seeing delegations who come to
discuss with him their highway problems. Frequently they come from
the most distant points in the Commonwealth. The time and expense
involved in their travel is considerable; and, though he works 20
hours a day, it is impossible for any single man to meet these delega-
tions, listen to their problems, and give to their recommendations the
thoughtful consideration to which they are entitled. An advisory com-
missioner is easily accessible to inet people. He knows, first hand,
the needs of his district for roads and he can lend an ear to his people
and furnish intelligent advice to the Commissioner. I am very certain

Feb. 27 HOUSE OF REPRESENTATIVES 9

the creation of Advisory Commissioners will meet with the approval
of the overwhelming majority of the people of the Commonwealth.

(5) A new Division of Farm Management has been created with-
in the Department of Welfare in an effort to strengthen the related
program which dates from my previous administration. It is believed
that this division can secure more economical and more efficient
operation than has been achieved in the past. It will assist every agency
of the state which has a farm to increase the production and to utilize
to better advantage the available equipment, produce, and personnel.

(6) The functions of the Strip Mining and Reclamation Com-
mission have been transferred to a division of the Department of
Conservation where these activities properly belong. The functions
of the Commission have been retained intact. The only change is in
the administration.

(7) We have taken from the Department of Conservation the
Division of Publicity and created a Department of Public Relations.
The Department of Public Relations serves many other departments
of the state government. Its functions are to publicize natural re-
sources, agriculture, commercial and industrial development, tourists
attractions and many other phases of the state government, and it does
not logically belong within any of the other departments.

(8) Also given department status is the Agricultural and In-
dustrial Development Board. During my campaign last year, I
promised to the farm people that agricultural development would
receive renewed interest during my administration. We all know that
the marketing of agricultural products, and in part the expansion in
the uses of some of these products, should be studied. It is our desire
that the new Department of Economic Development will give agricul-
ture a prominent place in its program in order that these promises
might be carried out. The problem of industrial development will not
be neglected, and the two programs can be coordinated, using the
same technical assistance for expansion of both.

(9) A new department of government, replacing the Department
of State Police, to be known as the Department of Public Safety,
has been created. Within this department will come a Division of
Kentucky State Police, a Division of Fire Prevention and a Division
of Operator Responsibility, which function has been transferred from
the Department of Revenue where it had little relevance. Also within
the Department of Public Safety is a Division of Accident Control
through which it is hoped to reduce drastically the number of known
highway accidents which occur daily in Kentucky.

It is my plan to augment the number of State Policemen—to
patrol the highways constantly and to do everything that is humanly
possible to reduce the needless loss of life that is occurring in Kentucky
daily, to say nothing of the grief, pain and suffering and economic
loss which flow from preventable accidents. I am not unaware that
safety is everybody's business, and this new department will under-

10 JOURNAL OF THE Feb. 27

take to enlist the aid and assistance of every Kentuckian to make its
work effective. The prevention of fire loss and the detection of arson
is a police function and is being placed where it rightfully belongs.
The Department of Insurance should be concerned with the regulation
of the insurance industry and with those functions alone. We believe
the creation of this Department of Safety and the assignment to it of
such activities as are logically police activities will go far toward
reducing accidents and affording to the people of Kentucky protection
to which they are entitled.

(10) The Lieutenant Governor, in the Reorganization Act, has
been made ex officio chairman of the Legislative Research Commission.
No elected officer can better carry on the duties required of the Legis-
lative Research Commission than the Lieutenant Governor. He is
constantly acquainted with the status of legislation and the need for
new legislation. His duties as Chairman of the Legislative Research
Commission will be substantial and it is contemplated that he will
devote much time to these functions.

(11) Another important shift of duties contained in the Reorgani-
zation Act is the work of the Board of Claims. This Board hears and
determines claims against the Commonwealth which do not exceed
$5,000. At the present time the Board is composed of the Commissioner
of Finance, the Attorney General and a judge of the Court of Appeals.
Neither of these officers are in a position to adjudge claims against
the Commonwealth impartially. The Commissioner of Finance is the
“watch dog” of the treasury—the Attorney General is required to resist
claims against the Commonwealth—and the judges of the Court of
Appeals are required to review claims against the Commonwealth
which reach them through judicial proceedings. It has always seemed
to me that the composition of this Board is dubious. The Reorganiza-
tion Act places adjudication of these claims before a Board to be
composed of five attorneys who are members of the Workmen’s
Compensation Board and who, therefore, are completely removed from
any considerations which would preclude impartial judgment of the
claims which come before them. It is my judgment that this is a
needed change in our government.

(12) Another phase of the Reorganization Act, which should be
mentioned, is the creation of a Medical Research and Education Com-
mission empowered to contract with any school of medicine in the
Commonwealth of Kentucky for the education of medical students and
for medical research. Coupled with this plan is a prospective arrange-
ment for reimbursement of students for fees if they practice for a
specified period in counties which lack decent medical service. This
Commission is the vehicle by which we hope to induce doctors to lo-
cate in critical areas in Kentucky where they are needed so badly.
Nothing is accomplished quickly, but we believe it will alleviate the
critical shortage of doctors in Kentucky as quickly as any plan which
has yet been devised.

Feb. 27 HOUSE OF REPRESENTATIVES Le

I have not undertaken to acquaint you with all of the details of
the 1956 Reorganization Act. The Proposed Act will be available to
you tomorrow. I hope you will study it closely and that you will
find merit in it. This proposed Act represents much time and effort.
It has been carefully considered, and we believe it is adequate to
accomplish such reorganization of the state government as is needed
at this time. Of course, I welcome your constructive criticism, but
I hope you will not criticize without thoughtful reflection. My aim and
my purpose is to enact a framework of laws which will permit all
branches of the state government to be as helpful as possible to our
citizens—to make the pursuit of happiness a little easier—to make
their way of life a little better.

Mr. Morgan moved that the Joint Session of the General Assembly
do now dissolve. Agreed.

The Speaker resumed the Chair and called the House to order.

Mr. Morgan moved that the House adjourn until 10:00 A.M.,
February 29th. Agreed.

12 JOURNAL OF THE Feb. 28

TUESDAY, FEBRUARY 28, 1956
SECOND LEGISLATIVE DAY

The House was called to order by Speaker F itzpatrick.

Prayer by Elder Eddie Beshear of the Primitive Baptist Church,
Dawson Springs, Kentucky.

The roll was called. All present except Billington, Caudill, David-
son, Davis, Farmer, Freeman, Griffin, Heyburn, Hilton, Durham
Howard, Lambert, Lowman, Melton, Murphy, Newsom, Nunnelley,
Ockerman, Qualls, Ratcliffe, John B. Reed, Reynolds, and Tinsley, who
were granted leaves of absence on motion of Representative Morgan.

Reading of Journal for February 27, 1956, dispensed with and the
same approved on motion of Representative Isler.

Introduction of Bills

HB 1, by Representative Morgan: AN ACT to reorganize the
departments and agencies of the state government for the purpose of
providing for better service and economy.

Recess

Representative Morgan moved that the House do now recess until
2:00 P.M. Agreed. At the appointed hour, the Speaker resumed the
Chair and called the House to order.

Report of Committee

Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.

Committee on Rules reported HB 1 with the expression of opinion
that the same should pass. Read at length for the first time and ordered
placed in the Calendar.

HB 1: AN ACT to reorganize the departments and agencies of the
state government for the purpose of providing for better service and
economy; providing for the departments and independent agencies
therein specified; abolishing certain departments and agencies, creating
others; transferring others; defining the organization, powers and
duties of offices, departments, boards, commissions and other agencies
that are hereby created and providing for their coordination; fixing
terms of office, salaries, methods of appointments and election to,
duties of, qualifications for, and methods of removal from offices and
positions.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Feb. 28

HOUSE OF REPRESENTATIVES

ARTICLE I. ADMINISTRATIVE DEPARTMENTS

Section lI.

Section 12.020 of the Kentucky Revised Statutes is

amended to read as follows:

Except as otherwise provided by law, the functions of the state
are divided among the constitutional administrative departments, sta-
tutory administrative departments and independent agencies as follows.

I. Constitutional Administrative Departments:

MUD TUB ~ bo

The Governor.
Department of State.

Department
Department

Department of Agriculture, Labor and Statistics.

of Law.
of the Treasury.

Department of Education.
Department of Military Affairs.

II. Statutory Administrative Departments:
1.
2

3
4
5
6
7
8
9
10
ll
12
13.
14.
15
16
17
18
19
20
21

Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department

of Finance.

of Personnel.

of Revenue.

of Highways.

of Welfare.

of Health.

of Mental Health.

of Industrial Relations.

of Mines and Minerals.

of Aeronautics.

of Banking.

of Fish and Wildlife Resources.
of Alcoholic Beverage Control.
of Conservation.

of Public Relations.

of Economic Development.

of Economic Security.

of Motor Transportation.

of Insurance.

of Public Safety.

of Business Regulation.

III. Independent Agencies:

Auditor of Public Accounts.

Board of Election Commissioners.
Board of Registration and Purgation.
Railroad Commission.

State Racing Commission.

Public Service Commission.

Soil Conservation Committee.
County Debt Commission.

GO NO CUR Go bo Fr

14 JOURNAL OF THE Feb. 28

and all other agencies that are by statute designated as independent
agencies.

Section 2. Section 12.040 of the Kentucky Revised Statutes is
amended to read as follows:

(1) The heads of departments enumerated in KRS 12.020 shall
have direction and control of their respective departments, and through
their departments shall exercise the powers and perform the duties
vested in the departments under their direction and control and in
any agencies thereof. Except as otherwise expressly provided by
law, the heads of statutory administrative departments shall be ap-
pointed by the Governor for terms not to exceed four years on the
basis of their merit and fitness to perform the duties of their respective
offices.

(2) The heads of all departments shall exercise supervision over
the personnel and financial records of their respective departments.

(3) In case of a vacancy or in the absence or disability of the
head of a statutory administrative department, the Governor may
authorize the head of a division or other administrative officer to act
as head of the department.

ARTICLE II. DEPARTMENT OF EDUCATION

Section 1. Section 156.020 of the Kentucky Revised Statutes is
amended to read as follows:

The Superintendent of Public Instruction shall recommend to
the State Board of Education the appointment of an Assistant Superin-
tendent of Public Instruction who is authorized to act in the absence
of the Superintendent of Public Instruction.

Subject to KRS, Chapter 12, the Superintendent of Public Instruc-
tion shall also recommend for the approval of the State Board of
Education the establishment of such divisions of the State Depart-
ment of Education as he deems necessary for the successful adminis-
tration and supervision of the common schools and other educational
a ae placed under the management and control of the State Board
of Education. He may group the established divisions under such
bureaus as he deems wise.

Section 2. Section 156.095 of the Kentucky Revised Statutes is
amended to read as follows:

The State Department of Education is hereby authorized to
establish, direct and maintain a state-wide program of in-service
teacher training. Said program shall be organized and operated for
the purpose of improving instruction in the public common schools
and for the improvement of the leadership qualities and professional
competence of principals, supervisors and teachers and for such other
services in the improvement of instruction in the public common
schools as may be approved from time to time by the State Board
of Education on the recommendation of the Superintendent of Public
Instruction.

Feb. 28 HOUSE OF REPRESENTATIVES 15

Section 3. Section 156.140 of the Kentucky Revised Statutes is
amended to read as follows:

The Superintendent of Public Instruction shall have general
supervision of all the assistants, agents and employees in the depart-
ment. He shall, subject to the provisions of Article IV hereof and
KRS, Chapter 12, appoint and set the salary of all division heads,
assistants, agents and employees of the department, but the appoint-
ment and dismissal of all division heads and other professional staff
members shall be upon the approval of the State Board of Education.

Section 4. Section 157.210 of the Kentucky Revised Statutes is
hereby repealed.

Section 5. There is hereby established within the Bureau of
Rehabilitation Services of the Department of Education the Ken-
tucky Industries for the Blind which shall provide training and em-
ployment for adult blind persons.

Section 6. All personnel, functions, appropriations, assets, lia-
bilities and property, both real and personal, of the Kentucky Work-
shop for the Blind are hereby transferred to the Kentucky Industries
for the Blind.

Section 7. Section 167.190 of the Kentucky Revised Statutes is
hereby repealed.

ARTICLE III. DEPARTMENT OF FINANCE

Section 1. Subsection (1) of Section 58.440 and Section 56.450
of the Kentucky Revised Statutes are hereby repealed.

Section 2. The State Property and Buildings Commission is
hereby abolished. The functions of the Commonwealth relating to
state property and buildings provided in KRS 56.450 to 56.550 shall
be performed by the Department of Finance, with the engineering
functions to be performed by licensed graduate engineers, as the
Commissioner of Finance, with the approval of the Governor, may
direct.

Section 3. The records, property, personnel, any unexpended
appropriation balances and trust and agency funds maintained for
carrying out the functions of the State Property and Buildings Com-
mission heretofore provided in KRS 56.440 to 56.550 are hereby trans-
ferred to the Department of Finance.

Section 4. Section 56.460 of the Kentucky Revised Statutes is
hereby amended to read as follows:

The Department of Finance, under the direction of the Com-
missioner of Finance, with the approval of the Governor, shall have
the power and duty:

(1) To determine the comparative needs and demands of the

16 JOURNAL OF THE Feb. 28

various state agencies for acquiring real estate and for building
projects.

(2) To expend the capital outlay appropriation, referred to in
Section 5 of 1949, ex. s., c. 11, for the purpose of acquiring real estate
and for building projects for any state agency, and for matching
federal funds available under Public Law No. 725 (79th Congress)
Chapter 958, Second Session or any other federal law now existing
or hereafter enacted, for the purchase, construction, improvement or
repairing of property to be used for public purposes, whether owned
by the Commonwealth, or by any agency thereof, or by any political
subdivision or municipality, or by nonprofit corporations or associa-
tions; and where so expended for matching federal funds the provisions
of subsection (5) of this section and the provisions of KRS 56.530 shall
not be applicable.

(8) To purchase, lease or rent such real estate as the Commis-
sioner of Finance, with the approval of the Governor, may find to be
necessary for use by the state or by any state agency, upon such
terms and conditions and for such consideration as may appear to
the Commissioner of Finance and to the Governor to be fair and
reasonable.

(4) To sell and convey any real estate owned by the state or
by any state agency, found by the Commissioner of Finance, with
the approval of the Governor, not to be needed for public use or to
have become unsuitable for such use, except that this power shall not
extend to real estate as to which a particular state agency has the
power, as recognized in subsection (2) of KRS 56.500, to sell or convey
with the approval of the Commissioner of Finance and the Governor.

(5) (a) To control the use of any real estate owned by the
Commonwealth, and to determine for what periods of time and for
what purposes any state agency may use the same, including the
agency for whose use it was initially acquired or improved, and to
determine what appropriate uses shall be made of such real estate
during periods that the Commissioner of Finance, with the approval
of the Governor, finds the same is not required for the purposes of
any particular state agency.

(5) (b) To determine the housing and furnishings needs of the
various state agencies located in Frankfort and to establish and put
into effect a permanent program for housing them. The Commis-
sioner of Finance is also authorized and directed to allocate office
space and furnishings in existing public buildings located in Frankfort
according to the needs of the various agencies and when necessary
to provide additional office space and furnishings in Frankfort under
any building program he, with the approval of the Governor, deems
most advisable and economical for the state. The permanent housing
program shall include provisions for housing the General Assembly
and its related agencies, including the Legislative Research Commis-
sion, the Executive Officers, the Court of Appeals and the Clerk of the

Feb. 28 HOUSE OF REPRESENTATIVES 17

Court of Appeals, the Department of Law and the Law Library, in
the New State Capitol. If there be any additional space in the Capitol,
it shall be assigned to agencies whose activities are most closely re-
lated to the agencies directed to be located permanently in the Capitol.

(6) To acquire, by condemnation in any manner provided in
KRS, Chapter 416, any real estate necessary for use by the state or
by any state agency, when the Department of Finance, is unable to
agree with the owner thereof on a price for such real estate.

(7) To lease any real estate or any part thereof, now owned or
hereafter acquired by the state or by any state agency, to any person
not a state agency, when the Commissioner of Finance, with the ap-
proval of the Governor, finds as a matter of fact that the real estate
or any part thereof is not needed for state purposes, except that this
power shall not extend to any real estate as to which a particular
state agency has power, as recognized in subsection (2) of KRS 56.500,
to lease with the approval of the Commissioner of Finance. Any
such lease shall be upon such terms and conditions and for such con-
sideration as the Commissioner of Finance, with the approval of the
Governor, may prescribe, and shall be in the name of the Common-
wealth of Kentucky, and shall be signed by the Commissioner of
Finance and lodged for record in the Office of the Secretary of State.

Section 5. Section 56.470 of the Kentucky Revised Statutes is
hereby amended to read as follows:

After the Department of Finance, as the Commissioner of Finance,
with the approval of the Governor, may determine, has determined
the need and demand of any state agency for acquiring real estate
or for a building project, the Commissioner of Finance, with the ap-
proval of the Governor, is authorized and empowered to provide for
and adopt such plans and specifications as may be necessary, to ad-
vertise for and receive bids for any expenditures proposed to be made,
to award contracts for the purpose authorized, to supervise construc-
tion and make such changes and revisions in plans and specifications
or in construction as may become necessary, and generally to do any
and all other things as may become necessary or expedient in order
to effectively fulfill and carry out the purposes for which the State
Property and Buildings Commission, which is now abolished, was
created, including the right to employ such clerks, engineers, statis-
ticians, architects or other persons required to be employed in order
to fulfill the functions of the Commonwealth relating to state property
and buildings provided in KRS 56.450 to 56.550, and further to adopt
such rules and regulations as may be expedient and which are not
in conflict with the general purposes of KRS 56.450 to 56.550. The
advertisement for bids and the receipt thereof and the awarding of
contracts thereon shall be in accordance with KRS Chapters 12, 42,
and 45. Warrants for such expenditures shall be issued by the Com-
missioner of Finance on the State Treasurer.

18 JOURNAL OF THE Feb. 28

Section 6. Section 56.480 of the Kentucky Revised Statutes is
hereby amended to read as follows:

The Division of Engineering and Construction of the Department
of Welfare, which was created and placed under the direction of the
Department of Welfare by executive-administrative order of the
Governor of the Commonwealth on October 6, 1944, and which was
transferred to the Kentucky Building Commission by Chapter 287 of
the Acts of 1948, is hereby abolished, and all personnel, property,
equipment, and facilities of that division, including its books, records,
studies, plans and specifications shall, upon the effective date of this
section, be transferred to and be under the supervision and control of
the Department of Finance. The Commissioner of Finance, with the
approval of the Governor, may appoint qualified licensed graduate
engineers, provided that a qualified graduate engineer may be ap-
pointed for a period not to exceed one year without obtaining a
license, who shall perform such duties as may be delegated to them
from time to time by the Commissioner of Finance. The Department
of Finance, with the approval of the Governor, shall prepare such
plans and specifications as may be necessary, shall investigate and
make studies of the comparative need and demand for acquiring
any lands, or for the construction or reconstruction or structural
maintenance of any buildings, or for the purchase, installation or
construction of any equipment, facilities or furnishings incidental or
pertaining thereto, shall make such estimates of cost as may be re-
quired in connection with or incidental to the development, purchase,
acquisition or construction of the foregoing. The engineering staff shall
give such technical assistance and perform such other duties as the
Commissioner of Finance may require.

Section 7. Section 56.490 of the Kentucky Revised Statutes is
amended to read as follows:

No state agency shall have power or authority to make plans and
specifications, advertise for bids, let contracts or incur any financing
commitments, either in the way of a charge against public funds or in
the way of negotiations for issuance of revenue bonds, for any building
project requiring the expenditure of more than $10,000, without first
securing the approval and authorization of the Department of Finance,
as the Commissioner of Finance, with the approval of the Governor,
may direct. The state agency seeking such approval shall submit to
the Department of Finance a general description of the proposed
project, with such detailed information as the Commissioner of Finance
may require. The Department of Finance shall not approve or au-
thorize any such proposed project in any instance where it finds, with
the approval of the Governor, that the project is not needed, or that
the proposed method of financing is not sound, or in cases where the
project is proposed to be paid for out of appropriations, that the cost
of completing the project will exceed the amount of the appropriation
available therefor, or the work contemplated will be insufficient for

Feb. 28 HOUSE OF REPRESENTATIVES 19

the purposes for which the appropriations were made, or that after
providing for the ordinary recurring expenses of government and for
debt service and for payments under existing allotment for extra-
ordinary expenses and capital outlay, cash will not be available in the
State Treasury to promptly pay for the work during the biennium. The
Department of Finance, as the Commissioner of Finance, with the
approval of the Governor, may direct, in approving a proposed project
may in its discretion elect that the Department of Finance itself,
pursuant to the authority conferred by KRS 56.470, shall prepare the
plans and specifications, advertise for bids, award the contracts,
supervise the construction, and handle the financing negotiations, on
behalf of the requesting state agency, or the Commissioner of Finance,
with the approval of the Governor, may authorize the state agency so
to do in its own behalf.

Section 8. Section 56.500 of the Kentucky Revised Statutes is
amended to read as follows:

No state agency, other than the Department of Finance, as the
Commissioner of Finance, with the approval of the Governor, may
direct, shall have power or authority:

(1) To acquire by purchase, lease, condemnation or other means
involving the expenditure of money, any real estate for the use of the
state or of any state agency;

(2) To lease, sell or convey any real estate belonging to the
state or to any state agency, except that any state agency having the
power under other laws to lease, sell or convey real estate devoted
to the exclusive use of such agency may continue to exercise that
power subject to the approval of the Commissioner of Finance as to
each transaction.

Section 9. Section 56.510 of the Kentucky Revised Statutes is
amended to read as follows:

(1) In carrying out the purposes of KRS 56.440 to 56.550, and in
providing for the expenditure of funds for the acquisition of real estate
or for a building project for the state or for any state agency, the
Department of Finance, as the Commissioner of Finance with the
approval of the Governor, may direct, may specify that the cost may
be paid in whole or in part (a) out of the funds appropriated specifically
for capital outlay purposes or (b) out of funds directly appropriated
to the involved state agency which may legally be available for the
purpose, or (c) out of funds derived or which may be derived by the
issuance and sale of revenue bonds by the Department of Finance, or
with the approval of the Commissioner of Finance and the Governor,
by the issuance and sale of revenue bonds by the involved state agency
in the manner and to the extent now provided by law, or (d) by any one
or a combination of said methods of financing. When any funds ap-
propriated to or standing to the credit of a particular state agency are
to be used for a purpose of the character above contemplated, the

20 JOURNAL OF THE Feb. 28

head of the agency may direct that the funds be transfererd to the
credit of the Department of Finance and made available for expendi-
ture by the Department of Finance for the agreed purpose.

(2) In any case where the expenditures for the acquisition of
real estate or re a building project for the state or any state agency
are to be financed in whole or in part by the issuance or sale of
revenue bonds, the Commissioner of Finance in his discretion may
provide that the title to any real estate which may be so acquired shall
not vest in the Commonwealth until the revenue bonds, together with
the interest thereon, have been paid in full. In such cases the Com-
missioner of Finance may, by agreement or in a trust indenture secur-
ing the payment of such revenue bonds, provide that the title of such
real estate may be vested in some other state agency, or in a trustee
named in such indenture, until the revenue bonds, together with the
interest thereon, have been paid in full.

(3) The Department of Finance, as the Commissioner of Finance,
with the approval of the Governor, may direct, in providing for the
expenditure of funds for any of the purposes mentioned in this section,
or for the issuance and sale of revenue bonds, shall have power to
provide by agreement with the state agency affected, or by provision
in the trust indenture securing the revenue bonds, such terms and
conditions as may be considered appropriate and reasonable so as to
permit the leasing to, and use by, any state agency which provides
funds either (a) from its own appropriation, or (b) by the issuance
of revenue bonds, or (c) by means of a proposal to pay a rental for the
use of all or any part of any building proposed to be constructed. The
Department of Finance, in making any such lease agreement, or in
making provision in any trust indenture securing revenue bonds, is
authorized and empowered to lease all or any part of the building
for such term and upon such conditions and for such consideration as
may appear to be in the public interest.

Section 10. Section 56.520 of the Kentucky Revised Statutes is
hereby amended to read as follows:

(1) The Department of Finance is authorized and empowered
to issue and sell revenue bonds in such denominations and in such
amount or amounts as may be deemed by the Commissioner of Finance
to be for the best interest of the Commonwealth and as may be ap-
proved by the Governor, for any of the following purposes:

(a) To acquire real estate to be devoted to a revenue-producing
use;

(b) To pay all or any part of the expense or cost of or incidental
to a building project;

(c) To defray the cost of plans, specifications, blue prints, ar-
chitectural fees and other expenses authorized to be incurred under
the terms of KRS 56.440 to 56.550.

(2) Any revenue bonds so issued shall bear interest at a rate not

Feb. 28 HOUSE OF REPRESENTATIVES 21

exceeding five per cent per annum, payable semiannually, and shall
become due and payable not more than forty years from the date of
issuance. The payment of the bonds, together with the interest thereon,
may be secured by a pledge and a first lien on all of the receipts and
revenue derived, or to be derived, from the rental or operation of the
property involved. Neither the payment of any bond, nor the interest
thereon issued under the authority of KRS 56.440 to 56.550, shall
constitute an indebtedness of the Commonwealth of Kentucky, nor
shall any bond or interest thereon be payable out of any fund except
such funds as may be derived from rentals or other revenues derived
from the operation of the properties or from such revenues as may
have been, or may be, available for such purpose, or purposes, by law.

(3) All bonds which may be issued by the Department of Finance
under the provisions of KRS 56.440 to 56.550 shall be sold as provided
in KRS 42.070 after having been duly advertised in a newspaper of
general circulation in the Commonwealth during three consecutive
weeks and in such other advertising as the Department of Finance
may prescribe if it finds additional advertising is necessary.

(4) All competitive bids for the sale of such revenue bonds shall
be opened and read publicly by the Commissioner of Finance or his
representative at a designated place, day and hour, all of which shall
be announced in the advertising made relative thereto.

(5) Except as otherwise specifically provided in KRS 56.440 to
56.550, the Department of Finance is vested with all of the rights,
powers and duties set forth and enumerated under Chapter 58 of the
Kentucky Revised Statutes.

(6) In the event the Department of Finance issues and sells
revenue bonds for a building project as authorized in KRS 56.440 to
56.550, it may carry such insurance, including fire and windstorm,
casualty, catastrophe, use and occupancy and such other insurance
as the Commissioner of Finance may deem advisable and as may be
approved by the Governor in connection with the building project,
and may so obligate and bind itself in a trust indenture securing the
payment of such bonds. Any such insurance shal] be paid for out of
funds available for the project.

(7) All money from the sale of revenue bonds shall be deposited
in the State Treasury and shall be credited to a special fund to be
designated as directed by the Commissioner of Finance, and no part
thereof shall be withdrawn from the State Treasury except for the
purposes authorized by KRS 56.440 to 56.550, together with the
cost incidental to the issuing and selling of such bonds and other
expenses directly related thereto. The Department of Finance, as the
Commissioner of Finance may direct, may likewise provide in any
trust indenture securing revenue bonds for additional terms and
conditions thereof, or for other restrictions not in conflict with KRS
56.440 to 56.550.

(8) The authority herein conferred upon the Department of

22 JOURNAL OF THE Feb. 28

Finance to issue and sell revenue bonds is intended to, and shall be
construed as, a method for the issue and sale of bonds in addition to
the right, power and authority which any other state agency may
now possess under existing law; the right, power and authority now
vested in any state agency to issue and sell revenue bonds for the
purposes specified in KRS 56.440 to 56.550, or in any other Act, shall
remain in full force and effect.

Section 11. Section 56.580 of the Kentucky Revised Statutes
is hereby amended to read as follows:

The Commissioner of Finance, with the approval of the Governor,
is authorized to abandon, or cause to be abandoned, the construction
of any building which has heretofore been commenced, and to revise,
or cause to be revised, the plans and specifications for any such build-
ing, or to change, modify or restrict the right of any state agency to
occupy any such building, or to wholly abandon any one or more of
such construction projects, as the Commissioner of Finance, with the
approval of the Governor, may determine to be in the best interests
of the Commonwealth, in order that suitable office space and facilities
can be provided for all state agencies in the most economical manner
and in accordance with sound business principles. In the event the
Commissioner of Finance, with the approval of the Governor, de-
termines to abandon, or cause to be abandoned, the construction of
any building, or to change the purposes for which such building is
being constructed, or for which contracts have been entered into, or
were commenced, by the state or any state agency, the Commissioner
of Finance, with the approval of the Governor, is authorized to make
such equitable adjustment or settlement with the architects, engineers
and contractors employed in connection with such construction as he
may deem just and equitable. In the event there is an adjustment or
settlement with said architects, engineers or contractors, the Depart-
ment of Finance is authorized to pay the same, or to approve the
payment thereof, from any of the funds set forth in KRS 56.510.

Section 12. Section 56.540 of the Kentucky Revised Statutes is
hereby amended to read as follows:

Any act including but not confined to debt obligations or action
taken, prior to the effective date of this Act, by the State Property and
Buildings Commission created by Acts of 1949, ex. s., c. 11, sec. 2,
which act or action was of a character authorized by this Act to be
done by the Department of Finance, as the Commissioner of Finance,
with the approval of the Governor, may direct, is hereby ratified and
validated the same as if it had been done by the Department of Fi-
nance, as the Commissioner of Finance, with the approval of the
Governor, had directed and had been done under the authority of
KRS 56.440 to 56.550 as amended by this Act. The Department of
Finance is authorized and directed to execute any conveyance or other

Feb. 28 HOUSE OF REPRESENTATIVES 23

writing necessary to perfect any record of action taken by the State
Property and Buildings Commission.

Section 13. The approval of the Governor shall be required
before any transaction involving land provided for in KRS 56.450 to
56.550 can be carried out by the Department of Finance or by the
Commissioner of Finance.

Section 14. The Commissioner of Finance, with the written
approval of the Governor, may transfer unneeded portions of appro-
priations for construction of particular projects from one project to
another or to others, whether for the same or for a different agency, in
order to secure most efficiently the construction program according to
the policy reflected in appropriations of the legislature.

Section 15. Information on revenue bonds issued by the Com-
monwealth and by the agencies and institutions thereof shall be
assembled and published under the direction of the Commissioner
of Finance.

Section 16. The functions provided in KRS 56.460 (2) and 56.510
(1) (a) shall be continued for not longer than two years after the
effective date of this Act after which said functions shall be abolished.

Section 17. There is hereby created within the general fund a
special buildings fund from which expenditures shall be made in
carrying out the provisions of this Act. Unexpended balances in the
buildings fund shall carry forward from year to year without lapse.

Section 18. Section 42.020 (1) of the Kentucky Revised Statutes is
hereby amended to read as follows:

The Department of Finance shall be headed by a Commissioner
of Finance and shall be divided for administrative purposes into a
Division of the Budget, a Division of Accounts, a Division of Pur-
chases and a Division of Services.

Section 19. Subsection (1) of Section 42.080 is amended to read
as follows:

The Department of Finance shall have and exercise all adminis-
trative functions of the state, except as otherwise provided by law,
in relation to:

(a) Developing financial policies and plans for consideration
by the Governor as the basis for his budget and recommendations to
the General Assembly, and preparing the detailed documents in ac-
cordance with the financial plans of the Governor for presentation to
the General Assembly.

(b) Coordinating and supervising the fiscal affairs and fiscal pro-
cedures of the state to insure the carrying out of the definite financial
policies and plans approved by the General Assembly.

24 JOURNAL OF THE Feb. 28

(d) Fiscal reporting.

(e) Preauditing of expenditures and current auditing of receipts
and receivables.

(f) Purchasing and storekeeping and control of property and
stores.

(g) Keeping accounts controlling all receivables of the state.

(h) Maintaining and operating public buildings, except those
provided for the exclusive use of any one agency.

(i) Auditing the accounts of the Treasurer and the Auditor of
Public Accounts, as contemplated by section 58 of the Constitution.

Section 19. Section 41.220 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Not less than three solvent banks shall be designated as de-
positories for state funds. Each bank designated shall have not less
than the minimum capital stock as required in paragraphs (2) and (3)
of KRS 287.070. Between meetings of the State Investment Commis-
sion, banks shall be designated as depositories for state funds upon
agreement of the State Treasurer and the Commissioner of Finance.
Those designated shall be entered in the executive journal. If at any
time it appears that the capital of any depository has become impaired,
the state’s deposits shall be withdrawn and another depository named.

(2) The State Treasurer and the Commissioner of Finance shall
determine the needs for moving state funds from one designated de-
pository to another.

Section 20. Section 42.070 of the Kentucky Revised Statutes is
amended to read as follows:

(1) All persons, firms or corporations who are in a position to
and desire to bid on and furnish any of the materials, supplies or
equipment usually purchased by the Division of Purchases during the
year may at any time file with such division its or their name or names,
together with the character and kind of such materials, supplies and
equipment which it or they may desire to bid on and furnish, and
such names shall be recorded in some record kept in the office of said
division giving the name and address and identifying such materials,
supplies or equipment as each may be able and desires to bid on and
furnish. The Division of Purchases may employ this roster and other
available sources of information as a basis for inviting bids. Said
division, with the approval of the Commissioner of Finance, may re-
quire prebidding qualifications of vendors, including if deemed de-
sireable, the giving of bond to insure contract performance. The
Division of Purchases, with the approval of the Commissioner of
Finance, may remove from its lists of eligible bidders the name of any
firm whose performance has failed to meet standards set by the
division. Said division shall require bidding, except in the case of
purchases of three hundred dollars or less; and, in the interest of
state economy, it may require competitive bidding on purchases of
three hundred dollars or less. The Division of Purchases shall send to

Feb. 28 HOUSE OF REPRESENTATIVES 25

prospective bidders reasonable written notice of proposed purchases.
Said notices shall state also the time and place of receiving and
opening bids, and any other information said division may deem to be
in the best interest of the state, and all said bids shall be made in
writing, typewritten or in ink; sealed, and opened and read publicly
by said division as they are opened and after due consideration contract
shall be awarded to the lowest and best bidder, unless in the discretion
of said division, no satisfactory bid has been received, in which event
any or all bids may be rejected and new bids requested as herein
provided by giving further notice to prospective bidders as herein
provided or by advertisement, and pending delay said division may
make such purchases as will relieve pressing emergencies. In the event
no bids are received, such emergency purchases may be made until
new bids are advertised for and received. A statement setting forth
the reason for each emergency purchase shall be filed as part of the
record on each emergency purchase. In case any or all bids are rejected
as unsatisfactory, the said division may negotiate purchase, at a price
or prices lower than the lowest and best bid or bids rejected, of any or
all of the materials, supplies or equipment proposed to be purchased.

Section 21. The Superintendent of Public Instruction, as execu-
tive officer of the State Board of Education, upon application and
requisition to the Division of Purchases in the Department of Finance,
is hereby authorized and directed to secure price contract agreements
for the purchase of school busses by all district boards of education.
The Division of Purchases shall enter into price contract agreements
under established purchasing procedure in keeping with KRS 42.060
to 42.070 inclusive. Said price contract agreement shall establish
sources of supply, maximum prices to be paid and shall set forth the
length of time for which contracts shall be valid.

Section 22. All school busses for which bids are made or bid
contracts awarded shall meet the standards and specifications of the
State Board of Education. The term “school bus,”.as used in this section,
shall mean any motor vehicle which meets the standards and specifi-
cations for school busses as provided by law or by the standards or
specifications of the State Board of Education authorized by law and
used solely in transporting school children and school employees to
and from school under the supervision and control and at the direction
of school authorities, and shall further include school bus accessory
equipment and supplies and replacement equipment considered to be
reasonably adaptable for purchase from price contract agreements.

Section 23. The Superintendent of Public Instruction shall make
available to all district boards of education full information respecting
established price contract agreements, and any or all districts may
procure busses from sources and at prices, terms and conditions in-
corporated in said price contract agreements. Any district board of
education may take its own bids on school busses which meet the

26 JOURNAL OF THE Feb. 28

specifications of the State Board of Education for school busses for
which price contracts have been established, provided the Super-
intendent of Public Instruction approves the bids and purchase con-
tract as meeting specifications of the State Board of Education.
However, no district board of education shall purchase school busses
under the terms of this section unless the Superintendent of Public
Instruction shall certify that the purchase price is lower than prices
set forth in established price contract agreements for similar equipment.

ARTICLE IV. DEPARTMENT OF PERSONNEL

Section 1. (1) There shall be in the state government a Depart-
ment of Personnel, a statutory administrative department within the
meaning of KRS, Chapter 12, the executive head of which shall be a
Commissioner of Personnel.

(2) The Department of Personnel shall have and exercise all
administrative functions of the State, except as otherwise provided by
law, in relation to administration of all laws of general application
relating to the personnel employed by the Commonwealth. All such
functions heretofore vested in the Division of Personnel in the De-
partment of Finance are hereby transferred to and vested in the
Department of Personnel.

Section 2. (1) The Commissioner of Personnel shall be ap-
pointed by the Governor as provided in KRS 12.040 for the heads of
statutory administrative departments and shall be chosen on the basis
of training, experience and qualifications for the position, and shall
have had at least four years experience in personnel management or
equivalent experience, and shall preferably have had specialized
training in personnel administration.

(2) Subject to the provisions of KRS, Chapter 12, the Department
of Personnel, under the direction of the Commissioner of Personnel,
shall:

(a) Test and pass upon the qualifications of all applicants for
appointment to and promotion in the various positions in the several
agencies of the state government, except as hereinafter provided;

(b) Establish employment and reemployment lists from which
appointments are to be made to the various positions in the state
service;

(c) Prepare and maintain a roster of all employees in the state
service, showing for each employee his name, post office address,
tide of position held, rate of compensation, changes in status, trans-
fers, sick leave and vacations, and any other pertinent facts;

(d) Ascertain the correctness and validity of all payrolls before
they may be lawfully authorized for payment, or supply to another
Department the proper data for so doing;

(e) Ascertain and record the duties, responsibilities and authority

Feb. 28 HOUSE OF REPRESENTATIVES 27

pertaining to the various positions in the state service, and classify such
positions in the manner hereinafter provided;

(f) Make studies for each class of position of the rates being paid
for similar or comparable services elsewhere and other information
pertaining to proper rates of compensation, and prepare a schedule of
compensation for each class of position with a minimum salary rate,
a maximum salary rate, and such intermediate salary rates as are
deemed necessary and equitable;

(g) Devise, install and administer service-rating systems and
training courses for employees as far as practicable;

(h) Arrange for and pass upon transfers, and regulate annual
and sick leaves and special leaves of absence, hours of work, layoffs and
removals;

(i) Transfer employees temporarily from one department to
another department, when necessary to expedite the work of any
department;

(j) Certify to each state agency such persons eligible under sub-
section (2) (a) of this section as the agency deems necessary for
efficient service in established positions;

(k) Make investigations pertaining to personnel, salary scales
and employment conditions in the state service;

(I) Prepare, adopt and administer such rules and regulations as
are necessary to carry out the provisions of this section and of KRS
42.150 and of sections 5 to 9 hereinafter.

Section 8. (1) The Department of Personnel shall determine
the qualifications of applicants for positions in the state service by
tests, in connection with which appropriate credit shall be allowed for
experience in public service or in private employment of comparable
character. The tests may be written, oral or physical, or in the form
of a demonstration of skill, or any combination of these, and shall be
of such character as fairly to determine the fitness and ability of the
person tested actually to perform the duties of the class of position to
which he seeks appointment. The tests shall be competitive, free and
open to all persons who may be lawfully appointed to any position in
the class for which they are held, with such limitations as to age,
residence, health, habits, character and sex as the Department considers
desirable and specifies in the public announcement of the test. For
positions involving unskilled or semiskilled labor, or involving domestic,
attending, housekeeping or custodial services at institutions where
the character of the work, the relatively low rate of compensation, or
the place of work make it impracticable to secure at stated times a
sufficient number of applicants to supply the needs of the service, the
department may provide by regulation for the testing of applicants,
singly or in groups, at stated places for such unskilled or semiskilled
labor, and at institutions or elsewhere for domestic, attending, house-
keeping or custodial service, the tests to be given at any time on due
notice thereof but without public announcement.

28 JOURNAL OF THE Feb. 28

(2) Heads of administrative departments and divisions and their
private secretaries, members of state boards and commissions, judges
and employees thereof, Representatives and the Senators, directing
heads of the state university, colleges and other state schools and all
professors, teachers and staffs in such schools shall be exempt from
the tests required in this section. All other appointive officers and
employees entering state employment shall pass the required tests
before they shall be eligible for appointment, except that the Depart-
ment of Personnel may authorize the filling of a position at once by a
provisional appointment, not renewable, for not more than four months,
and may authorize temporary appointments, with or without tests and
not renewable, for a period not exceeding three months.

(3) Subject to KRS, Chapter 12, the Department of Personnel
shall ascertain the duties and responsibilities of all positions in the
state service, and maintain a classification plan with rules for its ad-
ministration. The classification plan shall show for each class of posi-
tion: the title given to each class; a statement of duties and respon-
sibilities of those holding positions in each class; the minimum qualifi-
cations required; the natural and probable lines of promotion to and
from the class; and the appropriate salary ranges, showing minimum,
maximum and intermediate rates for each class.

(4) In establishing any employment list following tests for en-
trance into state service, the Department of Personnel shall place on
the list, in the order of the earned ratings on the complete tests, the
names of persons who show they possess the qualifications that render
them eligible to appointment when a vacancy in any position allocated
to the class occurs. Except as otherwise provided in this section, all
appointments, including promotions, made by the executive or appoint-
ing officers of all agencies of the state government shall be from
employment lists furnished or approved by the department. The de-
partment shall provide by rule for the consolidation, continuation and
cancellation of employment lists and for the removal of names there-
from for good cause.

Section 4. (1) The appointing officer of each state agency shall
notify the Department of Personnel immediately of changes in the
status of any subordinate officer or employee with respect either to
position or salary, whether or not the position is exempt from the
requirements of section 5.

(2) Before compensation may be lawfully paid to state officers
or employees, the Department of Finance may demand supporting
information sufficient to ascertain that the persons whose names appear
on the payrolls have been legally employed for the performance of
the duties indicated at the compensation rates and for the periods for
which pay is claimed.

Section 5. The appointing officer of each state agency may re-
move any subordinate officer or employee under his jurisdiction, and

Feb. 28 HOUSE OF REPRESENTATIVES 29

upon doing so he shall forthwith notify the Department of Personnel.
If the subordinate officer or employee so removed requests it in writ-
ing, the officer who removed him shall file with the department a
statement setting forth the reasons for the removal, which statement
shall be open to public inspection. In all such cases the action of the
officer making the removal shall be final if he acted within his
authority.

Section 6. Sections 42.110, 42.120, 42.180 and 42.140 of the
Kentucky Revised Statutes are hereby repealed.

Section 7. Upon the effective date of this Act all property,
except as otherwise herein provided, officers and employees held by or
employed by the Department of Finance for use in carrying out
personnel functions and all appropriation balances to the credit of the
Department of Finance expressly earmarked for use in carrying out
personnel functions shall be transferred to the Department of Per-
sonnel for use in carrying out the purposes of this Act.

Section 8. Nothing in this Act is intended to alter the Merit
Systems now in existence. The Department of Personnel may, how-
ever, perform examination, training and other personnel functions for
these agencies with the agreement of the Commissioner of Personnel
and the Commissioner of the department concerned.

ARTICLE V. DEPARTMENT OF HIGHWAYS

(1) There shall be a State Highway Commission which shall
serve in an advisory capacity to the Commissioner of Highways. The
Commissioner of Highways shall serve as ex officio member of the State
Highway Commission.

(2) In addition to the Commissioner of Highways, the Commis-
sion shall be composed of advisory commissioners appointed by the
Governor for four-year terms. One advisory commissioner shall be
appointed from each of the state highway districts established by the
Commissioner of Highways with the written approval of the Governor.
Each advisory commissioner shall be reimbursed for his actual and
necessary travelling expenses. The State Highway Commission shall
hold meetings at the seat of government or at a place designated by
the Commisisoner of Highways at any time specified by the Com-
missioner of Highways.

(3) The advisory commissioners shall visit the fiscal courts and
have hearings in the various counties of their districts, ascertain the
condition and needs of the state highways in their respective districts
and acquaint the Commissioner of Highways from time to time as to
such conditions and needs. They shall advise the Commissioner of
Highways relative to the personnel needs and the personnel efficiency
of the state highway forces in their respective districts, and, when
counties indicate their desire for the department to aid in the main-

30 JOURNAL OF THE Feb. 28

tenance of county roads, advise the Commissioner as to the most
practical plans for the maintenance of county highways in the several
counties of their respective districts. The advisory commissioners
individually and when acting together as the State Highway Com-
mission shall have no administrative authority or responsibility in
the operation of the department.

ARTICLE VI. DEPARTMENT OF WELFARE

Section 1. (1) There is hereby created in the Department of
Welfare a Division of Farm Management. The Division shall be
headed by a director, appointed by the Commissioner of Welfare, with
the approval of the Governor, Bs shall have had training or expe-
rience in farm management.

(2) Such personnel as are needed to carry out the functions of
the division shall be appointed and compensated as provided by
KRS, Chapter 42.

Section 2. (1) The Division of Farm Management may provide
specialized consultation and management services for all state in-
stitutional farms; create a clearing house for the interchange of in-
formation, surplus produce, equipment, or land; plan and coordinate
farm programs and provide liaison between farms and between de-
partments.

Section 3. (1) There is hereby created an Advisory Board of
Farm Management. The Commissioner of Welfare, the Commissioner
of Mental Health, the Commissioner of Conservation and the Com-
missioner of Agriculture shall be members of the board.

(2) The board shall act in an advisory capacity to the director of
the Division of Farm Management. It shall provide for long-range
planning for land usage, manpower usage, and production goals. It
shall cooperate with the University of Kentucky College of Agriculture,
State Soil Conservation Service, and other agencies.

Section 4. (1) The funds for administering this act may be pro-
rated among the departments served. Funds for capital outlay and
farm receipts may be placed in a central fund and administered by
the director subject to the provisions of KRS, Chapters 42 and 45.

ARTICLE VII. DEPARTMENT OF CONSERVATION

Section 1. Subsection (8) of Section 350.010 of the Kentucky
Revised Statutes is hereby amended to read as follows:

(8) “Director” means the Director of the Division of Strip Mining
and Reclamation of the Department of Conservation.

Section 2. The Strip Mining and Reclamation Commission is
hereby abolished. The functions of the Strip Mining and Reclamation
Commission provided in KRS Chapter 350 are hereby transferred to
and shall be performed by the Department of Conservation, except

Feb. 28 HOUSE OF REPRESENTATIVES 31

as otherwise provided. Any reference in KRS Chapter 350 to the Strip
Mining and Reclamation Commission or the “Commission,” henceforth
shall be construed to be a reference to the Department of Conservation.

Section 8. The Director of the Division of Strip Mining and
Beclamation shall be appointed by the Commissioner of Conservation
in accordance with KRS 12.050.

Section 4. The records, property, personnel, any unexpended
appropriation balances and trust and agency funds maintained for
carrying out the functions of the Strip Mining and Reclamation Com-
mission provided in KRS Chapter 350, are hereby transferred to the
Department of Conservation for use in carrying out the same functions.

Section 5. Section 350.050 of the Kentucky Revised Statutes is
hereby amended to read as follows:

The Division of Strip Mining and Reclamation of the Department
of Conservation, under the supervision of the Commissioner of Con-
servation, shall have and exercise the following authority and powers:

(1) To exercise general’supervision and administration and en-
forcement of this chapter and al] rules and regulations and orders
promulgated thereunder;

(2) To encourage and conduct investigations, research, experi-
ments and demonstrations, and to collect and disseminate information
relating to Strip Mining and the reclamation of lands and waters
affected by strip mining;

(8) To adopt, after giving notice to all operators actively engaged
in strip mining and affording them an opportunity to appear and offer
evidence at a public hearing, general rules and regulations pertaining
to strip mining to accomplish the purposes of this chapter;

(4) To adopt, without hearing, rules and regulations with respect
to procedural aspects of hearings, the filing of reports and orders, the
issuance of permits and other matters of procedure and administration;

(5) To issue, after hearing, orders requiring the adoption by an
operator of such remedial measures as are found to be necessary for
the reclamation of the area of land affected by his operation;

(6) To examine and pass upon all plans and specifications sub-
mitted by the operator for the reclamation of the area of land affected
by his operation;

(7) To make investigations or inspections which may be deemed
necessary to insure compliance with any provision of this chapter,
and to examine or compel the production of any records or memoranda
relating to a strip mining operation;

(8) To conduct hearings under regulations of the Division of
Strip Mining and Reclamation that have been approved by the Com-
missioner of Conservation, and to compel the attendance of witnesses
and examine them under oath at such hearings.

32 JOURNAL OF THE Feb. 28

Section 6. Subsection (1) of Section 350.060 of the Kentucky Re-
vised Statutes is hereby amended to read as follows:

(1) After July 1, 1954, no operator shall engage in strip mining
without having first obtained from the Department of Conservation
a permit designating the area of land affected by the operation, The
permit shall authorize the operator to engage in strip mining upon the
area of land described in his application for a period of one year from
the date of its issuance.

Section 7. Section 350.160 of the Kentucky Revised Statutes is
hereby amended to read as follows:

Any person aggrieved by any Department of Conservation order,
determination, ruling or regulation as to strip mining may apply to
the Department of Conservation for a review thereof within thirty
days after the issuance thereof. The department shall review the
matter as soon as practicable, shall hear the parties, their representa-
tives and witnesses, and shall make a final determination of the issue,
a copy of which shall be mailed to the complainant. Within twenty
days after the mailing of a copy of the final determination, any person
aggrieved may appeal therefrom on any question of law, including
adequacy of evidence, to the Franklin Circuit Court. The complaint
shall state fully the grounds upon which a review is sought and assign
all errors relied on. Two copies of the complaint shall be filed with
the Department of Conservation on the day it is filed with the Clerk
of the Franklin Circuit Court. The appellant shall file as a part of his
complaint the record before the Department of Conservation, including
all pleadings, orders and such parts of the evidence as he believes
necessary to develop the points involved. The Department of Con-
servation may certify other portions of the evidence. To facilitate final
adjudication of the matter, the department shall furnish to the appel-
lant, on payment of a reasonable fee to be fixed by the department, a
certified copy of such parts of the record as he may require. The case
shall then be heard by the court on the record, except that either party
may introduce evidence of fraud. Except as otherwise expressly pro-
vided, the Rules of Civil Procedure shall govern procedure involving
appeals under this section.

Section 8. Sections 350.030, 350.040, and subsection (9) of Section
350.010 of the Kentucky Revised Statutes are repealed.

Section 9. Section 146.070 is amended to read as follows:

The Division of Archaeology shall collect, classify and preserve
archaeological relics and materials, preserve archaeological sites, and
conduct archaeological research. The head of the Department of An-
thropology of the University of Kentucky is director, ex officio, of the
Division.

Section 10. Section 146.010 of the Kentucky Revised Statutes
is amended to read as follows:

Feb. 28 HOUSE OF REPRESENTATIVES 33

(1) The Department of Conservation shall exercise all admin-
istrative functions of the state relating to:

(a) The operation and maintenance of parks and museums, except
those allocated to the Historical Society;

(b) The conservation and protection of natural resources, except
wildlife;

(d) Strip mining and reclamation, heretofore performed by the
Strip Mining and Reclamation Commission, except as otherwise pro-
vided.

(2) The Department of Conservation may exercise the right of
eminent domain as provided in KRS 148.060 and 148.070.

Section 11. Subsection (2) of Section 146.020 of the Kentucky
Revised Statutes is amended to read as follows:

(2) The Department shall be divided into a Division of Parks, a
Division of Forestry, a Division of Archaeology, a Division of Soil and
Water Resources, a Division of Strip Mining and Reclamation, and
the Flood Control and Water Usage Board.

Section 12. Section 146.090 of the Kentucky Revised Statutes is
amended to read as follows:

(1) The Soil and Water Resources Commission shall consist of
nine members, not more than five of whom shall be of the same
political party, to be appointed by the Commissioner of Conservation
with the approval of the Governor.

(2) One member shall be appointed from each of the districts
from a list of two names submitted from each such district by the
supervisors of the soil conservation districts that have their principal
offices therein. All members shall be supervisors of soil conservation
districts.

(3) The term of office of each such member shall be four years
except that as to the members first appointed the Commissioner of
Conservation shall designate three members for terms of two years,
three for three years, and three for four years; provided that, when-
ever a member of the commission ceases to hold the office of district
supervisor by virtue of which he is serving on the commission, his
term of office as a member of the commission shall be terminated, in
which case, and in the case of any other vacancy other than one caused
by the expiration of a term, a successor shall be appointed by the
Commissioner of Conservation to serve the remainder of the unexpired
term.

(4) The members of the commission shall designate a chairman
from among their members and may from time to time change such
designation. The commission shall keep a record of its official actions.
A majority of the commission shall constitute a quorum. The com-
mission may call upon the Attorney General for such legal services as

34 JOURNAL OF THE Feb. 28

it may require. It may delegate to its chairman, any of its members, the
director of the division or any officer, employee, or agent, such powers
and duties as it deems proper. Members of the commission shall re-
ceive no compensation for their services, but shall be entitled to
expenses, including traveling expenses, necessarily incurred in dis-
charging their duties.

Section 18. Section 146.100 of the Kentucky Revised Statutes is
amended to read as follows:

(1) The Commissioner of Conservation, with the approval of the
Soil and Water Resources Commission, shall appoint a director of the
Division of Soil and Water Resources who shall be a graduate of a
recognized agricultural college, with at least five years of practical
experience in professional agricultural activities and who shall serve
as executive officer for the commission. The director shall serve at the
will of, and receive such compensation as may be determined by the
Commissioner of Conservation, and before entering upon his duties
shall take the constitutional oath. The director shall hold no other
public office or employment. In addition to any other duties assigned
to him by the Commissioner of Conservation, the director shall exercise,
subject to the approval of the commissioner, general administrative
supervision over all activities, employees and property of the com-
mission.

(2) The Commissioner of Conservation may employ such other
officers, employees, and agents as he deems necessary and shall pro-
vide for surety bonds for members, the director, officers, employees
or agents if entrusted with funds or property.

ARTICLE VIII. DEPARTMENT OF PUBLIC RELATIONS

Section 1. (1) There shall be in the state government a Depart-
ment of Public Relations, a statutory administrative department within
the meaning of KRS, Chapter 12, the executive head of which shall be
a Commissioner of Public Relations, who shall be appointed by the
Governor as provided in KRS 12.040 for the heads of statutory ad-
ministrative departments. 7

(2) The Department of Public Relations shall have and exercise
all administrative functions of the State, except as otherwise provided
by law, in relation to the publicizing of natural resources, agricultural,
commercial and industrial development, and tourist attractions.

Section 2. The Department of Public Relations shall promote,
advertise and publicize the Commonwealth, its departments, agencies,
and institutions, highways, bridges, tourist attractions and any and all
of its other resources, facilities and advantages. The department may
engage in the preparation, publication and distribution of road maps,
booklets, other publications, photographs, advertisements, motion
pictures and other activities intended to advertise and publicize Ken-

Feb. 28 HOUSE OF REPRESENTATIVES 35

tucky highways and highway conditions, tourist, scenic and travel at-
tractions and places of interest to motorists, and other resources or
activities of the Commonwealth. The department may purchase space
in magazines, newspapers and other publications, purchase radio or
television time, and may cause to be made and circulated all maps,
prints, plans, lithographs, engravings and other specialized work
deemed necessary in the dissemination of information concerning roads
and highways, tourist attractions and other resources or activities of
the Commonwealth. The department may receive and spend donations,
and may allocate costs of promotion to the Department so benefited
with agreement of said department and with approval of the Depart-
ment of Finance.

Section 8. The records, property, personnel, any unexpended
appropriation balances and trust and agency funds maintained for
carrying out the functions of the Division of Publicity of the Depart-
ment of Conservation provided in KRS, Chapter 146, are hereby trans-
ferred to the Department of Public Relations.

Section 4. Section 146.060 of the Kentucky Revised Statutes is
hereby repealed.

ARTICLE IX. DEPARTMENT OF ECONOMIC DEVELOPMENT

Section 1. Sections 147.260 through 147.310 of the Kentucky
Revised Statutes are hereby repealed.

Section 2. Definitions. As used in this chapter, unless the con-
text requires otherwise:

(1) “Department” shall mean the Department of Economic De-
velopment;

(2) “Board” shall mean either the Agricultural Development
Board or the Industrial Development Board as the context shall re-
quire;

(3) “Commission” shall mean the Economic Development Com-
mission;

(4) “Commissioner” shall mean the Commissioner of the De-
partment of Economic Development.

Section 8. (1) There is hereby created an agency of the state
government to be known as the Department of Economic Develop-
ment, which shall constitute a statutory administrative department of
the state government within the meaning of Kentucky Revised Statutes,
Chapter 12. The Department shall consist of a Commissioner, an
Agricultural Development Board, an Industrial Development Board,
an Economic Development Commission, and such employees as are
provided in this Act.

(2) The Department shall be the successor to the Agricultural
and Industrial Development Board and all records, properties, facilities,

36 JOURNAL OF THE Feb. 28

responsibilities and employees of that agency are hereby transferred
to this department. _

(3) The Department, subject to the provisions of Kentucky Re-
vised Statutes 12.010 through 12.190 shall be organized into a division
devoted to agricultural development, a division devoted to industrial
development and such other divisions and sections as are from time to
time deemed necessary for the proper and efficient operation of the
Department.

(4) The executive officer of the Department shall be the Com-
missioner of the Department of Economic Development. He shall be
appointed by the Governor and shall serve at the pleasure of the
Governor. The Commissioner shall have general supervision and
direction over all activities and functions of the Department and its
employees, and shall be responsible for carrying out the programs
and policies determined by the Boards and the Governor. He shall be
the chief executive officer of the Department and, as such, shall have
authority to enter into contracts, subject to the approval of the Com-
missioner of Finance, when such contracts are deemed necessary
to implement and carry out the program of the Department. He shall
reimburse the travel expenses of Commission and Board members.

Section 4. (1) Agricultural Development Board. There is
hereby created in the Department an Agricultural Development Board
composed of not more than twenty-five members, who on a non-
partisan basis shall be appointed by and serve without compensation
at the pleasure of the Governor. The Governor shall designate one of
the members of the Board as Chairman. The Board shall meet at the
call of the Chairman.

(2) The Board, the Governor, and the Commissioner shall deter-
mine such policies governing the program of the Department as, in
their discretion, will attract favorable attention to the agricultural
potentialities and facilities of the Commonwealth.

Section 5. (1) Industrial Development Board. There is hereby
created in the Department an Industrial Development Board, com-
posed of not more than twenty-five members, who shall be appointed
by and serve without compensation at the pleasure of the Governor.
The Governor shall designate one of the members of the Board as
Chairman. The Board shall meet at the call of the Chairman.

(2) It shall be the duty of the Board, through the Commissioner,
to prepare and execute such programs of research and advertising as in
its discretion will attract favorable attention to the industrial and com-
mercial potentialities and facilities of the Commonwealth. The Board,
through the Commissioner, shall assist and coordinate the activities
of the state government and of the various municipalities, political
subdivisions, civic groups, and other agencies interested and active
in the promotion and development of industry, mining, and other
industrial potentialities of the Commonwealth. The Board shall aid

Feb. 28 HOUSE OF REPRESENTATIVES 37

and encourage other private and public organizations and groups in
such promotion and development.

Section 6. (1) There is hereby created in the Department an
Economic Development Commission comprised of the Commissioner
and eight members who shall be appointed by and serve at the pleasure
of the Governor. Four members shall be appointed from the member-
ship of the Agricultural Development Board and a like number from
the membership of the Industrial Development Board.

(2) The Commissioner shall serve, ex officio, as Chairman of the
Commission, which shall meet at his call as a joint body representing
both Boards.

(3) It shall be the function of the Commission to act as the
executive committee of the Department in resolving all matters of
policy as determined by the two Boards and, by formal action, to
translate these policies into an effective program of activities designed
to promote and expand the agricultural and industrial development of
the Commonwealth.

Section 7. (1) The Department shall prepare and publish as
often as is deemed necessary an inventory of the human and natural
resources of the Commonwealth; and shall assemble and keep in the
offices of the Department such information relating to natural re-
sources, labor supply, water, fuel, power, taxation and assessments,
transportation and communication facilities and such other information
as may be useful in executing the provisions of this Act. Such informa-
tion shall, subject to the rules and regulations of the Commission, be
made available to any enterprise which, in the discretion of the Com-
missioner, is legitimate and which contemplates location or operation
within the Commonwealth. Such information shall, in the discretion of
the Commissioner, be made available to any governmental or private
agency interested in securing the location or operation of any such
legitimate enterprise within the Commonwealth.

(2) The Department shall obtain from enterprises interested in
locating and operating within the Commonwealth information relating
to the nature of the enterprise, its financial responsibility, manpower
requirements, probable consumption of raw materials and such other
information as may be useful in securing the location of such enter-
prise in the Commonwealth, and shall make such information, subject
to the rules and regulations of the Boards and the Commission, avail-
able to any agency interested in securing the location or operation of
such enterprises within the Commonwealth.

Section 8. The Department shall prepare and publish, or cause
to be prepared and published, maps, planning studies, surveys per-
taining to soil conditions, land use and classification, distribution of
population, educational facilities, parks and playgrounds, highways, rail
and water transportation, traffic, water supply, drainage, flood control,
sewerage, building and housing conditions, urban development and

38 JOURNAL OF THE Feb. 28

re-development, subdivision control, planning and zoning and other
matters relating to the physical and economic development of the
Commonwealth.

Section 9. The Department is authorized to:

(1) Consult with agencies of the state, federal and local govern-
ment in order to coordinate development plans and to articulate
agriculture and industry in the light of the needs of particular localities;

(2) Make studies of land utilization so as to determine areas
suitable for field crops, for pasture, for reforestation, for watershed
protection, for reclamation, for game and fish preserves, for recreation,
for parks, and for industrial and urban development;

(3) Make studies and publish information relating to the physical
and economic development of the Commonwealth and make appro-
priate recommendations to the Governor and the General Assembly.

ARTICLE X. DEPARTMENT OF PUBLIC SAFETY

Section I. (1) There shall be in the state government a Depart-
ment of Public Safety, a statutory administrative department within
the meaning of KRS, Chapter 12, the executive head of which shall be
a Commissioner of Public Safety.

(2) The Commissioner of Public Safety shall be appointed by
the Governor as provided in KRS 12.040 for the heads of statutory
administrative departments.

(3) The Department of Public Safety shall be divided for ad-
ministrative purposes into a Division of Accident Control, a Division
of Kentucky State Police, a Division of Fire Prevention, and a Division
of Operator Responsibility, but this provision shall not affect the
authorization of the Commissioner of Public Safety to establish new
divisions and make changes with respect to existing divisions in ac-
cordance with the terms of KRS 12.080.

(4) The heads of the divisions of the Department of Public Safety
shall be appointed by the Commissioner of Public Safety in accordance
with the provisions of KRS 12.050.

Section 2. The following functions are hereby transferred to
and shall be exercised by the Department of Public Safety:

(a) All the functions of the Department of Kentucky State Police
and the Commissioner of Kentucky State Police;

(b) All the functions of the Department of Insurance, the Com-
missioner of Insurance, and the State Fire Marshal so far as said
functions relate to fire loss provided in KRS, Chapters 227, 228,
and 234;

(c) All the functions of the Department of Revenue provided
in KRS 186.400 to 186.640 relating to licensing of operators of motor
vehicles, except receipt of all moneys due the state from the circuit
clerks for operators’ licenses and except accounting for moneys so
received and depositing of those moneys with the State Treasurer.

Feb. 28 HOUSE OF REPRESENTATIVES 39

The excepted functions shall continue to be performed by the
Department of Revenue;

(a) All the functions of the Department of Revenue relating
to the administration and enforcement of the financial responsibility
law provided in KRS, Chapter 187.

Section 8. The records, property, personnel, any unexpended
appropriation balances and trust and agency funds maintained for
carrying out the functions of the Department of Kentucky State
Police, the functions of the Department of Revenue provided in KRS
186.400 to 186.640 that relate to licensing of operators of motor
vehicles except those functions concerned with the subject matter
of KRS 186.400 (8), all the functions assigned to the Department of
Revenue in KRS, Chapter 187 relating to the administration and en-
forcement of the financial responsibility law, all the functions of the
Department of Revenue provided in KRS 189.120, and all the functions
assigned to the Department of Insurance and State Fire Marshal
so far as those functions relate to fire loss as provided in KRS,
Chapters 227, 228, and 234 are hereby transferred to the Department
of Public Safety.

Section 4. The Division of Kentucky State Police shall be
headed by a Director of Kentucky State Police and shall exercise
all of the functions heretofore performed by the Department of Ken-
tucky State Police. The Director of the Division of Kentucky State
Police shall exercise the functions heretofore performed by the Com-
missioner of Kentucky State Police to the extent that these functions
are delegated to him by the Commissioner of Public Safety. The
Department of Kentucky State Police and the office of Commissioner
of Kentucky State Police are hereby abolished. Any reference in
KRS, Chapter 183, to the Department of Kentucky State Police, or
the “Department,” or any reference elsewhere to the Department of
Kentucky State Police, henceforth shall be construed to be a reference
to the Division of Kentucky State Police. Any reference in KRS,
Chapter 183, to the Commissioner of Kentucky State Police or the
“Commissioner,” henceforth shall be construed to be a reference to
the Commissioner of Public Safety, except to the extent that the
Commissioner shall delegate responsibilities to the Division of Ken-
tucky State Police.

Section 5. Section 16.020 and Subsections (2) and (8) of Section
16.030 of the Kentucky Revised Statutes are hereby repealed.

Section 6. Subsection (3) of Section 16.070 of the Kentucky
Revised Statutes is amended to read as follows:

(3) By agreement with the Commissioner of Highways of the
Commonwealth, the Commissioner of Public Safety may provide for
the leasing of motor vehicles and accessories thereto, radio facilities
and equipment, office equipment and other property or facilities,

40 JOURNAL OF THE Feb. 28

upon such terms and conditions and for such compensation as said
agreement may provide. The Commissioner of Highways and the
Commissioner of Public Safety may further provide, by agreement,
for the service and repair at any state garage of motor vehicles or
accessories thereto which are owned, operated or rented by the de-
partment, upon such terms and conditions and for such compensation
as said agreement may provide. Subject to Chapter 42 of the Ken-
tucky Revised Statutes, the department is authorized, by lease or
purchase, to acquire, maintain and operate motor vehicles, and the
officers of said department, including the commissioner, are authorized
and empowered to operate such motor vehicles in the course of their
duties, and in carrying out the purposes, responsibilities and functions
provided for in KRS 16.010 to 16.180.

Section 7. The Division of Fire Prevention shall be headed by
a State Fire Marshal and shall exercise all of the functions provided
in KRS, Chapters 227, 228, and 234 relating to fire loss heretofore
performed by the Department of Insurance and the State Fire Marshal.

Section 8. Subsections (1) and (2) of Section 227.200 of the Ken-
tucky Revised Statutes are amended to read as follows:

(1) “Commissioner” means the Commissioner of Public Safety.

(2) “Department” means the Department of Public Safety.

Section 9. The Division of Operator Responsibility shall be
headed by a Director of Operator Responsibility and shall exercise
the functions heretofore exercised by the Department of Revenue
provided in KRS 186.400 to 186.640 relating to licensing of operators
of motor vehicles to the extent that those functions are delegated to
it by the Commissioner of Public Safety, except those concerned
with the subject matter of KRS 186.400 (3) as hereinafter provided.
The Division of Operator Responsibility shall exercise all the functions
heretofore exercised by the Department of Revenue provided in KRS,
Chapter 187, relating to the administration and enforcement of the
financial responsibility law. Any reference in KRS, Chapter 187,
to the Department of Revenue or the “Department,” henceforth shall
be construed to be a reference to the Division of Operator Responsi-
bility, except where otherwise specified herein.

Section 10. Subsection (1) of Section 186.010 of the Kentucky
Revised Statutes is hereby amended to read as follows:

(1) “Department,” as used in KRS 186.015 to 186.270, means the
Department of Revenue. As used in KRS 186.400 to 186.640, it
means the Department of Public Safety.

Section 11. Section 186.400 of the Kentucky Revised Statutes
is amended to read as follows:

(1) The administration of the provisions of KRS 186.400 to
186.640 not specifically vested in the Department of Revenue or the

Feb. 28 HOUSE OF REPRESENTATIVES 4]

circuit clerks shall be vested in the Department of Public Safety. The
Department of Public Safety may prescribe regulations for the enforce-
ment of KRS 186.400 to 186.640, except that rules concerned with
the functions and duties of the Department of Revenue provided in
subsection (3) of this section shall be prescribed by the Department
of Revenue. The Department of Public mee also shall enforce
regulations governing the acts of the circuit clerks and motor vehicle
operators under KRS 186.400 to 186.640 and require reports which
it deems necessary.

(2) The department shall provide or cause to be provided to
appropriate persons or officials an adequate supply of forms for the
administration of KRS 186.400 to 186.640. The style of those forms
and the method of their use shall be prescribed by the department
and shall be adequate to protect the safety interests of the state.
The Department of Revenue shall prescribe the method of financial
control.

(8) (a) The Department of Revenue shall collect all moneys
due the state from the circuit clerks for operators’ licenses issued,
and shall deposit those moneys with the State Treasurer.

(b) At least once each year the Commissioner of Revenue and
the Commissioner of Public Safety shall cause a reconciliation to
be made between the record of receipts by the Department of Revenue
and the receipt of applications by the Department of Public Safety.

Section 12. Section 186.490, subsection (6) of the Kentucky
Revised Statutes is amended to read as follows:

The circuit clerk of each county shall:

(6) Report and remit each Monday to the Department of
Revenue all moneys collected during the preceding week and remit
a copy of all poplicaticns taken by him during the same period to
the Department of Public Safety. Upon failure of any clerk to report
and remit these for more than seven days after the due date, he
shall pay, in addition to the amount due, a penalty of ten per cent
of the amount due. Penalties collected under this section shall
be paid into the State Treasury as a part of the revenue collected
under KRS 186.410.

Section 18. Sections 186.575 and 281.725 of the Kentucky Re-
vised Statutes are hereby repealed.

Section 14. (1) No owner or operator of a motor vehicle used
for hire shall permit such motor vehicle to be operated upon the
highways unless the driver or chauffeur thereof has obtained, and
from time to time has renewed, in accordance with the requirements
of the Department of Public Safety, a certificate of the Department
of Public Safety to the effect that the driver or chauffeur has met its
requirements with respect to his health, vision, sobriety, intelligence,
care, ability and experience.

42 JOURNAL OF THE Feb. 28

(2) No owner or operator of a motor vehicle used for hire shall
permit such motor vehicle to be operated upon the highways unless
the driver or chauffeur thereof is at least eighteen years of age where
the vehicle is transporting property, or at least twenty-one years of
age where the vehicle is transporting passengers.

(3) The circuit clerk of each county shall:

(a) Act for the Department of Public Safety for the purpose of
issuing certificates and badges referred to in subsections (1) and (4)
of this section;

(b) Issue a certificate, when he has determined that the
applicant has fully complied with the law governing applications;

(c) Report to the Department of Public Safety not later than
the week following that in which the certificates were issued;

(d) Keep adequate records of all moneys collected and remitted
to the Department of Revenue;

(e) Keep in his office at all times available to the Department
of Public Safety a record of all certificates issued in his county.

(4) The certificate shall cost two dollars, of which twenty-five
cents shall be retained by the circuit court clerk to defray expenses of
issuing the certificate and maintenance of records, and the remaining
one dollar and seventy-five cents shall be paid into the State Treasury
and credited to the State Road Fund. The holder of such a certificate,
at all times when operating a motor vehicle for hire, shall have the
certificate in his possession, and shall wear a badge, to be issued by
the circuit clerk, indicating that he is a certified driver or chauffeur.

(5) The department may, for good cause, upon complaint or
upon its own motion, revoke or suspend any such certificate, and said
person shall be entitled to a hearing before the Department of
Public Safety.

Section 15. The Department shall provide assistance to and
cooperate with other agencies performing safety functions. The
Governor by Executive Order may transfer safety functions presently
in other departments or agencies to the Department of Public Safety.

Section 16. The Department of Public Safety may make rules
and regulations and direct proceedings and actions for administra-
tion of all laws and functions, the administration of which is vested
in the department.

ARTICLE XI. AUDITOR OF PUBLIC ACCOUNTS

Section 43.030 of the Kentucky Revised Statutes is amended to
read as follows:

(1) The Auditor shall appoint for the duration of his own term,
subject to removal by him at any time, one Assistant Auditor of
Public Accounts, who shall be a certified public accountant and shall
have been a citizen and resident of the state for at least two years.
The Assistant Auditor shall have direct supervision over all rohan

Feb. 28 HOUSE OF REPRESENTATIVES 43

work and technical assistants, and shall otherwise aid the Auditor in
the performance of his duties. If the Auditor is absent or is rendered
incapable of performing his duties, or if a vacancy in the office occurs,
the Assistant Auditor shall perform the duties of Auditor until the
necessity therefor ceases to exist. He shall take the constitutional oath.

(2) The Auditor may employ other subordinate personnel sub-
ject to the provisions of KRS 12.060. All such employees who are
assigned any direct auditing or investigating responsibility (except
for the secretary to the Auditor and for clerks classified under the
classification and compensation plan now prescribed by the Depart-
ment of Personnel at not above Grade 5 working under continuous
on-the-job supervision) shall be graduates of four-year colleges or
universities fully accredited by the University of Kentucky. Each
employee shall have had at least 20 semester- or 30 quarter-hours
of accounting or, alternatively, shall be a certified public accountant.
It is hereby provided, however, that prior to January 1, 1960, not
more than four, and thereafter not more than two, persons charged
with the conduct of audits and investigations may substitute year-for-
year responsible accounting experience acceptable to the Department
of Personnel for the required college education and proportionately
for the specified accounting. The Auditor, after December 31, 1957,
shall not be authorized to use the services of independent contractors
in audit and investigation work.

(3) The Auditor and his sureties shall be liable on his official
bond for the acts of the Assistant Auditor and clerks.

(4) Nothing in this section shall be deemed to affect the pro-
visions of KRS 11.090 or other legislation authorizing audits.

ARTICLE XII. LEGISLATIVE RESEARCH COMMISSION

Section 1. Section 7.090 of the Kentucky Revised Statutes is
amended to read as follows:

(1) There is hereby created a Legislative Research Commission
composed of the Lieutenant Governor, the President Pro Tem of the
Senate, the Speaker of the House of Representatives, and the majority
and minority Floor Leaders of the Senate and House of Representa-
tives. Any vacancy in the commission shall be filled by the remaining
members thereof, provided, if the vacancy is in the membership of
the House of Representatives then the successor shall be from the
House, and if the vacancy is from the Senate membership of the
commission then the successor shall be from the Senate. A member
thus elected to fill any vacancy shall hold office for the unexpired
term of his predecessor. The Lieutenant Governor shall be ex-officio
chairman of the commission.

(2) The Legislative Research Commission shall meet during
regular and special sessions of the General Assembly, and during the
intervals between sessions at such times and places as the chairman

44 JOURNAL OF THE Feb. 28

may determine. Meetings of the commission shall be called by the
chairman on his own initiative, or at the written request of any three
members of the commission. For attending meetings between sessions
whether regular or special, of the General Assembly, the members
of the commission, or any subcommittee thereof, shall be paid their
necessary traveling expenses and in addition thereto twenty-five dol-
lars per day.

(3) The commission shall appoint a director, who may be a
member of the commission, who shall have had graduate training in
government in a recognized university or college or practical ex-
perience in governmental administration, and who shall hold office
at the pleasure of the commission. If a member of the commission
is appointed as director, he shall not receive compensation for his
position as a commission member. The salary of the director shall
be determined by the commission. The commission, through its
agent, the director, shall have exclusive jurisdiction over the employ-
ment of such personnel as may be necessary to effectuate the provisions
of KRS 7.090 to 7.110 but the compensation and classification of such
personnel shall be set as provided in Article IV of this Act.

(4) The director shall, at the discretion of the commission and
under its supervision and control, provide for the allocation of the
work and activities of all employees of the commission.

(5) The commission may, in effectuating the provisions of KRS
7.090 to 7.110, contract with any public or private agency or educa-
tional institution or any individual for research studies, the gathering
of information or the printing and publication of its reports.

Section 2. It shall be the duty of the Legislative Research Com-
mission to carry on a program of study, review and re-examination
of the Constitution, continuing the program and functions formerly
performed by the Constitution Review Commission. The program
shall be so designed and carried on as to determine to what extent
the Constitution requires amendment or revision; to analyze and
appraise suggestions for amendment or revision advanced by interested
persons or groups; and to secure considered public opinion respecting
proposals for amendment or revision. The commission shall prepare
and propose in detail, and publicize in such manner as it deems proper,
such amendments or revisions of the Constitution as in its opinion will
promote the interest and welfare of the Commonwealth. The com-
mission shall report to the General Assembly at each of its regular
sessions, and if so requested at extraordinary sessions, showing in
detail the results of its labors, and setting forth its recommendations
for legislative action. If at any time a Convention shall be held to
revise or amend the Constitution, the commission shall advise and
assist that body as far as possible, and shall report to it as and
when requested.

Section 8. Sections 447.160, 447.170, and 447.180 of the Kentucky
Statutes are repealed.

Feb. 28 HOUSE OF REPRESENTATIVES 45

ARTICLE XIII. BOARD OF CLAIMS

Section 1. Section 44.070 of the Kentucky Revised Statutes is
amended to read as follows:

(1) A Board of Claims is hereby created and vested with full
power and authority to investigate, teas proof, and to compensate
persons for damages sustained to either person or property as a
proximate result of negligence on the part of the Commonwealth, any
of its departments or agencies, or any of its agents or employees
while acting within the scope of their employment by the Common-
wealth or any of its departments or agencies. The board shall be
independent of all agencies and departments of the Commonwealth.

(2) The board shall be composed of five attorneys who are
members of the Workmen’s Compensation Board and who have been
appointed and hold office under the provisions of KRS 342.215
and 342.220,

(3) The board shall have jurisdiction of claims for the recovery
of money where the amount in controversy, exclusive of interest and
costs, does not exceed $5,000.

Section 2. Subsection (2) of Section 44.100 is amended to read
as follows:

(2) Should the business of the board require clerical or other
help including referees, such help shall be employed by the board
subject to the provisions of KRS, Chapter 12.

ARTICLE XIV. HIGHER EDUCATION

Section 1. Section 164.320 of the Kentucky Revised Statutes
is amended to read as follows:

The Board of Regents for each of the state colleges shall consist
of the Superintendent of Public Instruction, who shall be chairman
of each Board, and seven members appointed by the Governor. Each
of the present members of the Board of Regents of each state college
shall continue as a member of the Board until the expiration of the
term for which he was appointed and qualified.

The terms of each member, except the holdover members, ap-
pointed under the provisions of this Act shall begin on April 1, 1957.
On or before April 1, 1957, the Governor shall appoint three members
to the Board of Regents for each of the four state colleges, except
Kentucky State College, and shall appoint four members to the Board
of Regents of Kentucky State College.

Two of the members of the Board of Regents of each state college,
except Kentucky State College, shall be appointed for a term of two
years, and one for a term of four years. On or before April 1, 1957,
the Governor shall appoint four members of the Board of Regents
of Kentucky State College, one member for a term of one year,
one member for a term of two years, one member for a term of three
years, and one member for a term of four years.

46 JOURNAL OF THE Feb. 28

Thereafter, appointments for a term of four years shall be made
by the Governor within thirty days after the expiration of the term
of each member. If the Governor should fail to make any such
appointment within thirty days after the expiration of the term of
any member, the remaining members of the Board of Regents of the
particular college, whose term shall not have expired, shall make such
appointment within sixty days after the expiration of such term.

Not more than two appointed members of any Board shall be
residents of one county; not more than six members of any Board,
including the Superintendent of Public Instruction, shall belong to
the same political party. Membership on the Board shall not be
incompatible with any other state office.

Appointments to fill vacancies shall be made in the same manner
and within the same time after the occurrence of the vacancy as regular
appointments. The person appointed shall hold the position for the
unexpired term only.

Each appointed member of the Board shall, at the first meeting
following his appointment, take an oath to faithfully discharge his
duties.

Each member of the Board shall serve for the term for which
he is appointed and until his successor is appointed and qualified.

Section 2. Subsection (2) of Section 63.080 of the Kentucky Re-
vised Statutes hereby is expressly made applicable to members of
the Board of Regents of each of said colleges.

Section 3. Section 164.540 of the Kentucky Revised Statutes
is amended to read as follows:

(1) The Council on Public Higher Education in Kentucky as
defined in KRS 164.010 is hereby designated as the agency of the
Commonwealth of Kentucky charged with the responsibility and
vested with all necessary authority, subject to the conditions and re-
strictions set out in subsection (2) of this section, to carry out the obli-
gations, participate in the planning and negotiations, and administer
the rights, benefits and privileges, devolving upon the Common-
wealth of Kentucky and its citizens pursuant to the regional compact
referred to in KRS 164.530, and to do all such other acts and things
as may be necessary or desirable to implement the provisions of said
regional compact efficiently and impartially for the benefit of all
citizens of the Commonwealth.

(2) In its participation in the regional compact, or in any other
regional plan having a similar purpose, the Commonwealth of Ken-
tucky shall not erect, acquire, develop or maintain in any manner any
educational institution within its borders to which Negroes will not
be admitted on an equal basis with other races, nor shall any Negro
citizen of Kentucky be forced to attend any segregated regional in-
stitution to obtain instruction in a particular course of study if there

Feb. 28 HOUSE OF REPRESENTATIVES 47

is in operation within the Commonwealth at the time an institution
that offers the same course of study to students of other races.

Section 4. The Council on Public Higher Education shall have
authority to provide for a program of medical research and education
in the Commonwealth. The program may be provided for by con-
tract with any recognized and accredited school of medicine located
within the Commonwealth of Kentucky. Such contract shall provide
that the school of medicine shall admit to its course of instruction, up
to such percentage of its full teaching capacity as may be fixed by
contract, residents of the Commonwealth who make application to
pursue the course of study of such school of medicine; provided, how-
ever, that such persons shall be certified to the Council as to status
of residency by the Registrar of the University of Kentucky, and shall
be eligible for admission to said school of medicine. The Council on
Public Higher Education shall pay to the school of medicine $1,500
per school year for each such student enrolled. Such payments shall
be additional to the annual tuition fees paid by each such student.
The Council shall have authority to provide by contract that it pay
the expense of specific medical research projects. The Council shall
make an annual report of its medical research and education program
after June 30 of each year, including an accounting of all moneys
received and disbursed. The Council shall have no authority to incur
any obligation in excess of the sums that have been appropriated to it.

Section 5. Sections 164.550, 164.555, 164.560, 164.565, 311.360
and 311.370 of the Kentucky Revised Statutes are hereby repealed.

ARTICLE XV. BOARD OF TRUSTEES OF THE KENTUCKY
EMPLOYEES RETIREMENT SYSTEM

Subsection (4) of Section 28 of House Bill 463 as passed by the
1956 General Assembly is amended to read as follows:

(4) The board shall:

(a) Appoint an executive secretary, who shall be the secretary
and the administrative officer of the board;

(b) Appoint such other employees as it deems necessary and. fix
the compensation for all employees of the board;

(d) Establish a system of accounting;

(e) Do all things, take all actions and make all rules and regu-
lations, not inconsistent with the provisions of this Act, that it deems
necessary or proper in order to carry out the provisions of this Act;
provided that the Governor, by Executive Order, for administrative
convenience and economy, may transfer the administrative functions
of the Board to any departments or agencies of state government.

48 JOURNAL OF THE Feb. 28

ARTICLE XVI. COMPENSATION OF STATE OFFICERS
AND EMPLOYEES GENERALLY

Section 1. Section 64.640 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Except as otherwise provided in subsection (2) of this sec-
tion, and excepting officers elected by popular vote, commissioners
of the Court of Appeals, employees of the General Assembly, in-
cluding employees of the Legislative Research Commission, members
of boards and commissions, and presidents and employees of the Uni-
versity of Kentucky and the state colleges, the Department of Person-
nel shall prepare a schedule of compensation, payable out of the State
Treasury, with a minimum and maximum salary rate, and such inter-
mediate salary rates as are deemed necessary or advisable, for the
office or position of employment of every state officer and employee,
including specifically the offices and positions of employment in every
constitutional administrative department, statutory administrative de-
partment, independent agency, or other unit of state government.
Such schedules shall be based upon studies of the duties and responsi-
bilities of the offices and positions and upon a comparison with rates
being paid for similar or comparable services elsewhere, and in the
preparation of such schedules, the Department of Personnel shall
ascertain and record the duties, responsibilities and authority per-
taining to the various offices and positions in the state service, and
classify such positions in the manner provided in KRS 42.120. No
such schedule shall become effective until it has been approved by
the Governor.

(2) The Governor shall set the compensation payable out of
the State Treasury to each office or position in the state service here-
inafter named but such compensation shall not exceed the maximum
sunis listed herein:

(a) Commissioner of Conservation, Commissioner of Economic
Development, Commissioner of Economic Security, Commissioner of
Finance, Commissioner of Health, Commissioner of Highways, Com-
misiioner of Mental Health, Commissioner of Public Safety, Com-
missioner of Public Relations, Commissioner of Revenue, $12,000;

(b) Adjutant General, Administrator of Distilled Spirits Unit,
Administrator of Malt Beverages Unit, Chief of the Department of
Mines and Minerals, Commissioner of Aeronautics, Commissioner of
Alcoholic Beverage Control, Commissioner of Banking, Commissioner
of Fish and Wildlife Resources, Commissioner of Industrial Relations,
Commissioner of Insurance, Commissioner of Motor Transportation,
Commissioner of Personnel, Commissioner of Welfare, Director of
the Kentucky Crippled Children’s Commission, Executive Director
of the State Tuberculosis Sanatoria Commission, Manager of the Ken-
tucky State Fair, Reviser of Statutes, $10,000;

(c) Members of the Public Service Commission of Kentuc , and
of the Workmen’s Compensation Board (the provisions of KRS 64.660

Feb. 28 HOUSE OF REPRESENTATIVES 49

to the contrary notwithstanding), and heads of statutory departments
and agencies other than those named in paragraphs (a) and (b) of
this subsection, $7,500;

(d) Each Advisory Highway Commissioner shall be paid an
annual salary of $7,200.

(8) The compensation payable out of the State Treasury to of-
ficers and employees subordinate to any office or position listed in
subsection (2) of this section shall not exceed the maximum rate
established pursuant to subsection (2) of this section for such office
or position, except with respect to physicians as provided in KRS
64.655 and employees of the Public Service Commission of Kentucky
whose compensation shall be fixed, within constitutional limits, by
the Department of Personnel with the approval of the Governor as
provided in subsection (1) of this section.

(4) The compensation payable out of the State Treasury to
any subordinate officer or employee in any department, agency, board
or commission of the state government not covered by subsection (3)
of this section and except elective officers and their employees, shall
not exceed $7,500 per annum, provided however that Doctors of
Veterinary Science may be paid not to exceed $10,000 per annum.

(5) Nothing in this section shall preclude the allowance of
maintenance to officers and employees of the state.

ARTICLE XVII. GENERAL PROVISIONS

Section 1. Nothing in this Act shall be construed to repeal the
provisions of Chapter 12 of the Kentucky Revised Statutes, except
such sections as may be specifically repealed by this Act.

Section 2. In order that appropriate accounts and budgets may
be set up, all transfers of funds, functions, and personnel made pur-
suant to this Act shall be supervised and approved by the Commis-
sioner of Finance.

Section 3. All of the provisions of this Act, with the exception
of Article X, shall become operative beginning July 1, 1956. All of
the provisions of Article X shall become operative beginning Sep-
tember 1, 1956.

Representative Morgan moved to adjourn until 1:00 P.M., Feb-
ruary 29th. Agreed.

50 JOURNAL OF THE Feb. 29

WEDNESDAY, FEBRUARY 29, 1956
THIRD LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend H. Glenn Stephens of the South Frankfort
Presbyterian Church, Frankfort.

The roll was called. All present except Bridgers, Caudill, Farmer,
Freeman, Hadden, Durham Howard, Kubale, Lowman, McFadden,
Melton, Murphy, Nunnelley, Pollitte, Qualls, Thomas, Thompson,
Walsh, and Weintraub, who were granted leaves of absence on motion
of Representative Morgan.

Reading of Journal for February 28, 1956, dispensed with and the
same approved on motion of Representative Isler. Agreed.

Calendar

HB 1 was taken from the Calendar and read at length for the
second time. Ordered placed in Orders of the Day.

Representative Morgan moved to adjourn until 11:00 A.M., March
Ist. Agreed.

Mar. 1 HOUSE OF REPRESENTATIVES 51

THURSDAY, MARCH 1, 1956
FOURTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend Edward L. Tullis of the First Methodist
Church of Frankfort.

The roll was called. All present except Bridgers, Gay, Durham
Howard, McFadden, Murphy, and Nunnelley, who were granted
leaves of absence on motion of Representative Morgan.

Reading of Journal for February 29, 1956, dispensed with and the
same approved on motion of Representative Isler. Agreed.

Representative Morgan moved that the House do now recess for
thirty minutes for a Democratic Caucus. Agreed.

At the appointed time, the Speaker resumed the Chair and called
the House to order.

Orders of the Day

HB 1 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 70~Anderson, Barnum, Baumgard-
ner, Beshear, Billington, Blankenship, Blue, Breathitt, Burnley, Bush,
Casey, Conrad, Cornett, Cottengim, Davidson, Davis, Embry, Everett,
Farmer, Fitzpatrick, Flanery, Freeman, Greene, Grigsby, Gullette,
Hahn, Harris, Hawkins, Highland, Hill, Hilton, Hinkle, Holsclaw,
C. S. Howard, Isler, Johnson, Kubale, Lowman, Mackey, Martin, Mc-
Callum, Melton, Miller, Moore, Morgan, Mullins, Newsom, Nunn,
Parrish, Pollitte, Qualls, Ratcliffe, Ray, Rayburn, J. B. Reed, V. Reed,
H. V. Reid, Reynolds, Searcy, Stith, Thompson, Tinsley, Walsh,
Wathen, Weintraub, A. W. Wells, L. B. Wells, Williamson, Wilson,
Young. Nays 19—Breckinridge, Buchanan, Caudill, Day, Gay, Griffin,
Grundy, Heyburn, Hislope, Jennings, Lambert, McKinney, Ockerman,
Peace, R. Reid, Sr., Saylor, Sloan, Tanner, Thomas.

HB I was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Senate Message

Announcing passage of SB 1, SR 3, SR 4. Ordered that said bills
and resolutions be referred.

Representative Morgan moved to adjourn until 8:00 P.M., March
5th. Agreed.

UNIVERSITY OF KENTUCKY
LAW LIBRARY

AGS &

52 JOURNAL OF THE Mar. 5

MONDAY, MARCH 5, 1956
SEVENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend Carter Roberts of the Church of the
Nazarene, Frankfort.

The roll was called. All present except Baumgardner, Blue, Breath-
itt, Caudill, Hadden, Lowman, McCallum, Miller, Nunn, Nunnelley,
Rayburn, Reynolds, Sloan, Stith, Tanner, Wathen, Weintraub, William-
son, and Young, who were granted leaves of absence on motion of
Representative Morgan.

Reading of Journal for March 1, 1956, dispensed with and the
same approved on motion of Representative Isler. Agreed.

Report of Committee
Committee on Rules reported SB 1, SR 3, and SR 4 with the ex-
pression of opinion that the same should pass. Read at length for the
first time and ordered placed in the Calendar.

SB 1: AN ACT to amend the Southern Regional Education Com-
pact to increase the number of members of the Board of Control for
Southern Regional Education from four from each state to five from
each state and to specify that one member from each state shall be
appointed by the Governor from among the membership of the Legis-
lature of that state.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. That part of Paragraph 2 of the Southern Regional
Education Compact which reads:

“The States do further hereby establish and create a joint agency
which shall be known as the Board of Control for Southern Regional
Education (hereinafter referred to as the “Board’), the members of
which Board shall consist of the Governor of each State, ex officio,
and three additional citizens of each State to be appointed by the
Governor thereof, at least one of whom shall be selected from the field
of education.”

Shall be amended to read as follows:

“The States do further hereby establish and create a joint agency
which shall be known as the Board of Control for Southern Regional
Education (hereinafter referred to as the “Board’), the members of
which Board shall consist of the Governor of each State, ex officio, and
four additional citizens of each State to be appointed by the Governor
thereof, at least one of whom shall be selected from the field of Edu-
cation, and at least one of whom shall be a member of the Legislature
of that State.”

Section 2. This amendment will take effect when eight or more

Mar. 5 HOUSE OF REPRESENTATIVES 53

of the States party to the Compact have given legislative approval to
the amendment.

SR 3: A JOINT RESOLUTION giving legislative approval to the
admission of the States of Delaware and West Virginia into the South-
ern Regional Education Compact entered into by the Commonwealth
of Kentucky and other Southern States; to declare that, upon ratifica-
tion of the Compact by the Legislature and approval by the Governor
of Delaware and/or West Virginia, and approval by the Legislature
and by the governor of the other States per to the Compact, the
States of Delaware and/or West Virginia become party to said
Compact.

WHEREAS, by action of the Legislature and approval of the
Governor, the State of Kentucky became party to the Southern
Regional Education Compact with the States of Alabama, Arkansas,
Florida, Georgia, Louisiana, Maryland, Mississippi, North Carolina,
Oklahoma, South Carolina, Tennessee, Texas and Virginia on March
25, 1950.

WHEREAS, the States of Delaware and West Virginia have in-
dicated their interest in becoming party to the said Compact,

Be it resolved by the General Assembly of the Commonwealth
of Kentucky:

Section 1. That the admission of the States of Delaware and
West Virginia be approved and that the States of Delaware and/or
West Virginia become party to the Compact upon approval of their
respective Legislatures and their respective governors and upon ap-
proval of their admission by the other States party to the Compact.

Section 2. That upon approval of this Resolution the Governor
sign an engrossed copy of this Resolution for submission to the South-
ern Regional Education Board.

SR 4: A CONCURRENT RESOLUTION urging the election of
Wendell Ford of Owensboro, Kentucky, to the office of President of
the United States Junior Chamber of Commerce.

WHEREAS, the Honorable Governor A. B. Chandler has by
Proclamation designated the week of February 23 to February 29,
1956 as “Jaycee Week” in Kentucky, and

WHEREAS, the General Assembly has been privileged to have
as its guests Wendell H. Ford of Owensboro, Kentucky, James R. Rice,
Jr. of Louisville, Kentucky, William Sullivan of Henderson, Kentucky,
and Arnold Sprague of Sturgis, Kentucky, and

WHEREAS, Wendell H. Ford, James R. Rice, Jr. and William
Sullivan were selected by the Kentucky Junior Chamber of Commerce
as Kentucky’s three outstanding young men of 1955, and Arnold

54 JOURNAL OF THE Mar. 5

Sprague was selected as Kentucky's outstanding young farmer of
1955, and

WHEREAS, Wendell H. Ford has served the Kentucky Junior
Chamber of Commerce as state treasurer, state vice-president and
state president and the United States Junior Chamber of Commerce
as national vice-president, and

WHEREAS, the Kentucky Junior Chamber of Commerce has
endorsed and enthusiastically recommended Wendell H. Ford for the
office of president of the United States Junior Chamber of Commerce
and has urged him to seek such office at the national convention to
be held in Kansas City, Missouri, from June 25 to June 29, 1956, and

WHEREAS, Wendell H. Ford has the personal qualities of in-
tegrity and sound judgment which are necessary in a leader,

NOW, THEREFORE,

Be it resolved by the General Assembly of the Commonwealth
of Kentucky:

Section 1. That the candidacy of Wendell H. Ford of Owens-
boro, Kentucky, for the office of President of the United States Junior
Chamber of Commerce be, and it is, hereby endorsed.

Section 2. That the members of the Junior Chambers of Com-
merce in our sister states be, and they are, hereby urged to give care-
ful consideration to the merits of electing one of Kentucky’s finest
young men to the leadership of their national organization.

Introduction of Bills
HB 2, by Representative Breckinridge: AN ACT to provide a merit
system of employment for county employees in counties containing
a city of the second class.

HB 3, by Representative Breckinridge: AN ACT relating to po-
litical parties.

HB 4, by Representative Breckinridge: AN ACT relating to traffic
regulations and equipment of vehicles.

HB 5, by Representative Breckinridge: AN ACT relating to chal-
lengers at general, primary and special elections.

HB 6, by Representative Breckinridge: AN ACT relating to the
contest of primary and regular elections.

HB 7, by Representative Breckinridge: AN ACT relating to the
conduct of regular elections.

HB 8, by Representative Breckinridge: AN ACT relating to roads,

HB 9, by Representative Breckinridge: AN ACT relating to or-
ganization of county children’s bureaus.

Mary. 5 HOUSE OF REPRESENTATIVES 55

Recess
Representative Morgan moved that the House do now recess for
20 minutes. Agreed. At the appointed hour, the Speaker resumed the
Chair and called the House to order.

Senate Message
Announcing passage of SB 2, SB 3, SB 4, SB 6. Ordered that said
bills be referred.
Representative Morgan moved that the House do now recess for
15 minutes for a Rules Committee Meeting. Agreed. At the appointed
hour, the Speaker resumed the Chair and called the House to order.

Report of Committee
Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.
Committee on Rules reported SB 2 with amendments, SB 3, SB 4,
SB 6 with the expression of opinion that the same should pass. Read at
length for the first time and ordered placed in the Calendar.

SB 2: AN ACT relating to circuit courts.

WHEREAS, the General Assembly has given due regard to the
elements of territory, business and population involved in the division
of the State into Judicial Districts, and,

WHEREAS, with such regard, the General Assembly has found
the following facts to exist:

(1) The entire population of the State as of the last Federal
census is 2,944,806.

(2) That upon the basis of population, additional judicial dis-
tricts may be established to the forty-five judicial districts now existing,
pursuant to Sections 182 and 138 of the Constitution.

(8) That the counties of Grayson, Breckinridge and Meade have
a combined population of 42,013 as of the last Federal census.

(4) That the population of Hardin County was 50,312 as of the
last Federal census and its population is rapidly increasing.

(5) That currently and heretofore the amount of business in the
Hardin Circuit Court is heavy and there is a considerable backlog of
cases pending before said court at this time and the business of the
Hardin Circuit Court combined with the business of the Grayson,
Breckinridge and Meade Circuit Courts makes it difficult to properly
take care of the business of all these circuit courts, the combined busi-
ness of the Hardin, Grayson, Breckinridge and Meade Circuit Courts
as the Ninth Judicial District as now existing is too much, and these
counties should be re-arranged and re-grouped.

(6) That the counties of Grayson, Meade and Breckinridge join
each other.

(7). That Hardin County has a large volume of cases from the
Fort Knox Military Reservation.

(8) That it will be convenient and advantageous from the stand-

56 JOURNAL OF THE Mar. 5

point of business, territory and population and will comply with the
spirit and intent of the Constitution and expedite the business of the
courts, and make it more convenient to the citizens of the counties
involved, to create a new Judicial District for the counties of Grayson,
Breckinridge and Meade, and to change the Ninth Judicial District so
that it will be composed of Hardin County.

NOW, THEREFORE,

Be it enacted by the General Assembly of the Commonwealth of
Kentucky:

Section 1. Section 23.040 of the Kentucky Revised Statutes is
amended to read as follows:

The State is divided into forty-six circuit court districts, each to be
composed of the following counties:

(1) First District. Ballard, Carlisle, Fulton, Graves and Hickman.

(2) Second District. McCracken.

(8) Third District. Christian, Lyon and Trigg.

(4) Fourth District. Caldwell, Crittenden and Hopkins.

(5) Fifth District. Henderson, Union and Webster.

(6) Sixth District. Daviess.

(7) Seventh District. Logan, Simpson and Todd.

(8) Eighth District. Allen and Warren.

(9) Ninth District. Hardin.

(10) Tenth District. Bullitt, Hart, Larue and Nelson.

(11) Eleventh District. Green, Marion, Taylor and Washington.

(12) Twelfth District, Anderson, Henry, Oldham, Shelby, Spen-
cer and Trimble.

(13) Thirteenth District. Boyle, Garrard, Lincoln and Mercer.

(14) Fourteenth District. Bourbon, Franklin, Scott and Wood-
ford.

(15) Fifteenth District. Boone, Carroll, Gallatin, Grant and
Owen.

(16) Sixteenth District. Kenton.

(17) Seventeenth District. Campbell.

(18) Eighteenth District. Harrison, Nicholas, Pendleton and
Robertson.

(19) Nineteenth District. Bracken, Fleming and Mason.

(20) Twentieth District. Greenup and Lewis.

(21) Twenty-first District. Bath, Menifee, Montgomery and

(22) Twenty-second District. Fayette.

(23) Twenty-third District. Estill, Lee and Owsley.

(24) Twenty-fourth District. Lawrence, Johnson and Martin.
(25) Twenty-fifth District. Clark, Jessamine and Madison.
(26) Twenty-sixth District. Harlan.

(27) Twenty-seventh District. Knox and Laurel.

Mar. 5 HOUSE OF REPRESENTATIVES 57

(28) Twenty-eighth District. Pulaski and Rockcastle.

(29) Twenty-ninth District. Adair, Casey, Cumberland and
Monroe.

(30) Thirtieth District, Jefferson.

(31) Thirty-first District. Floyd.

(32) Thirty-second District. Boyd.

(33) Thirty-third District. Letcher and Perry.

(34) Thirty-fourth District. Whitley and McCreary.

(35) Thirty-fifth District. Pike.

(86) Thirty-sixth District. Magoffin and Knott.

(37) Thirty-seventh District. Carter, Elliott and Morgan.

(38) Thirty-eighth District. Butler, Edmonson, Ohio and Han-
cock.

(39) Thirty-ninth District. Breathitt, Wolfe and Powell.

(40) Fortieth District. Clinton, Russell and Wayne.

(41) Forty-first District. Clay, Jackson and Leslie.

(42) Forty-second District. Calloway, Livingston and Marshall.

(43) Forty-third District. Barren and Metcalfe.

(44) Forty-fourth District. Bell.

(45) Forty-fifth District. Muhlenberg and McLean.

(46) Forty-sixth District. Breckinridge, Grayson and Meade.

Section 2. Subsections (9) and (46) of Section 23.050 of the
Kentucky Revised Statutes are amended to read as follows:

The regular term of each court shall commence in each county at
the following named time, and continue, if the business requires it,
the number of days hereinafter prescribed:

oo O29 % O

(9) Ninth District, Hardin County, at Elizabethtown, continuous
session.
#00800

(46) Forty-sixth District. Breckinridge County at Hardinsburg,
on the first Monday in January for thirty juridical days; second Mon-
day in May for twenty juridical days; first Monday in September for
thirty juridical days.

Grayson County at Leitchfield, on the second Monday in Febru-
ary for thirty juridical days; on the second Monday in June for twenty
juridical days; on the first Monday in October for thirty juridical days.

Meade County at Brandenburg, on the third Monday in March
for thirty juridical days; second Monday in July for twenty juridical
days; and first Monday in November for thirty juridical days.

Section 8. The present circuit judge and Commonwealth's attor-
ney for the Ninth District as now constituted, shall retain their re-
spective offices for the time for which they were elected, for the Ninth
District as it is changed under this Act; provided, however, that if
either of them is not on the effective date of this Act a resident of

58 JOURNAL OF THE Mar. 5

Hardin County, he shall not be allowed to retain his respective office,
unless he shall remove his residence, within a reasonable time, into
Hardin County.

Section 4. The office of circuit judge and Commonwealth’s at-
torney for the new judicial district as established under this Act are
hereby created. Until the regular election for circuit judges and Com-
monwealth’s attorneys, said offices shall be filled as provided in
Section 152 of the Constitution for offices in which there is a vacancy.

Section 5. If any provision or portion of this Act, or the applica-
tion of such provisions or portions to any judicial district affected
hereby should be held invalid, the remainder of this Act, and the appli-
cation of such remaining provisions shall not be affected thereby.

Section 6. Whereas, there is a considerable backlog of cases
pending before the Hardin Circuit Court and the circuit courts of the
counties of Grayson, Breckinridge, and Meade, an emergency is de-
clared to exist and this Act shall become effective immediately upon
its passage and approval by the Governor.

SB 3: AN ACT relating to the public health and public hospitals
in cities of the first class and in the counties containing such a city.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. That the Board of Aldermen of all cities of the First
Class may by ordinance, and the Fiscal Court of all counties contain-
ing a city of the First Class may by resolution enter into an agreement
respecting all the functions usually exercised and performed by city
or county health departments of this state and also respecting the
ownership of hospitals operated in connection therewith.

Such an agreement may authorize said counties to establish a
county wide health department, and said cities to establish a depart-
ment of hospitals. When such an agreement is recorded in the record
book of each governmental unit, then there shall be established the
See S tele teen ica ee (name of County) County Department of
Health and the City of _...-..-.2.22...22--22-o.ue (name of City)
Department of Hospitals. During the existence of this agreement
Sections 212.350 to 212.630 inclusive, Kentucky Revised Statutes shall
be suspended, except as is hereinafter provided.

Section 2. The City Department of Hospitals, if and when an
agreement is made as provided for by Section 1 hereof, shall become
an executive department of said City and shall be governed by Section
§3.160 Kentucky Revised Statutes. Any joint City County Board of
Health functioning under Sections 212.350 to 212.630 inclusive shall
convey by deed all hospitals and equipment owned by it wheresoever
situated, to said City and same shall be recorded in the County Court
Clerk’s Office. The personnel of said hospitals shall be retained by

Mar. 5 HOUSE OF REPRESENTATIVES 59

the City Department of Hospitals and shall be subject to the City’s
Civil Service or Merit System, if any.

Section 3. The Department of Hospitals when established as
herein provided for shall be under the supervision and direction of a
Director, to be appointed as other City Directors are, and to be desig-
nated a Director of Hospitals, and may be paid a yearly salary to be
fixed by the Board of Aldermen of said City, at an amount within the
constitutional limitation, and shall, except as otherwise provided by
law have exclusive control under the acts of the General Assembly
and the ordinances of the City, of all matters relating to the super-
vision of Public Hospitals belonging to said City and may organize said
department for administrative purposes as may be necessary for the
proper conduct of the business of said department. The City is hereby
authorized to furnish the necessary financial support.

The Mayor of said City shall appoint an Advisory Board for each
separate hospital consisting of three persons resident of said City. It
shall be the duty of each Advisory Board to inspect and keep in con-
tact with said hospital and advise and confer with said Director
periodically. The Department of Hospitals shall be subject to Sections
212.871 to 212.876 Kentucky Revised Statutes, inclusive.

Section 4 (a) The County Department of Health for counties con-
taining a City of the First Class, if and when an agreement is made
as provided for by Section 1 hereof, shall be under the management
and control of a Director to be appointed by the Fiscal Court of said
County when said agreement becomes effective. The Director shall
be appointed from a list of three names submitted by the Advisory
Board hereinafter provided for. He shall hold office at the pleasure
of the Fiscal Court and may receive a salary to be fixed by said Court
within the constitutional limitation. Said Director shall be a physician,
qualified as a public health administrator as provided by standards set
up by the State Board of Health of Kentucky and duly qualified and
licensed or eligible for license as a medical practitioner in the Com-
monwealth of Kentucky. Said Director may organize said department
for administrative purposes as may be necessary for the proper con-
duct of the business of said department. The Fiscal Court shall an-
nually make a sufficient levy to maintain said department, taking into
consideration any allotment which may be made by any other govern-
mental agency.

(b) Said Director may appoint with the approval of the Fiscal
Court, such health officers and assistants, including registered nurses,
as are required by any law, also such other employees as are necessary
to carry out the provisions of this act. The County Department of
Health shall, use the employees of the joint City and County Health
Department, existing at the time of the creation of the County Health
Department, insofar as it is economical and as may be provided in
any agreements executed in pursuance of this act.

60 JOURNAL OF THE Mar. 5

The personnel of the department, except the County Director of
Health and his private secretary shall be in the clasified service from
the date of the establishment of the department; and until such time
as the County has an appropriate Civil Service facility, the positions
and places of employment shall be subject to the jurisdiction of the
Civil Service Board of the First Class city contained in such County
and shall be governed by and made subject to the provisions of Ken-
tucky Revised Statutes 90.110 to 90.240, with the exception of Kentucky
Revised Statutes 90.210. Insofar as practicable and as may be provided
for in any agreements executed in pursuance of this act, all employees
holding positions in the classified civil service, who have been ap-
pointed on the basis of a competitive examination and whose duties
are transferred or may be transferred to the County Department of
Health, shall be utilized for duties of a similar character and in the
same class by the appointing authority.

This requirement shall not be construed to compel the appoint-
ment or retention of more employees than are necessary properly to
perform the duties of the department, nor as applying to persons em-
ployed less than six months prior to their transfer to the department.
The Fiscal Court shall reimburse the City of the First Class for costs
incurred by the City Civil Service Board by reason of the requirements
of this act, as may be provided for in any agreements executed pur-
suant to this act.

Section 5. The County Judge with the consent of the Fiscal
Court shall appoint an Advisory Board for the County Department of
Health. Said Board shall consist of three residents of the County. It
shall be the duty of said Board to advise with the County Judge, the
Fiscal Court, and the Director of Health, and to make such recom-
mendations to the Department of Health as they may deem necessary.

Section 6. Said Department of Health shall have authority to
enforce all state laws and duly authorized regulations pertaining to
public health and ordinances passed by any City of the County per-
taining to public health and not inconsistent therewith; and the officers
and agents of said departments shall have all the powers to carry out
said statutes and ordinances, and regulations, and where same are
applicable, the Department of Health shall have exclusive control in
the administration thereof. The Director of Health with the approval
of the Fiscal Court shall have the same authority as is provided for in
Sections 212.210 and 212.230, Kentucky Revised Statutes.

Section 7. Said Department shall control in said County all
matters affecting public health including (but not exclusive of
other powers pertinent thereto) the education of the public regarding
health conditions, and the adoption of remedial measures, also the
enforcement of all laws and ordinances including those regulating
sanitation, milk, meat and livestock, wells, drinking water and foun-

Mar. 5 HOUSE OF REPRESENTATIVES 61

tains, and vault inspections, also vaccination, immunization, quarantine,
and the maintenance of laboratories and clinics necessary for the pro-
motion of public health. It may expend funds for research work, in-
cluding laboratory and biometrical work, and establishing, erecting
and maintaining laboratories and other buildings and all apurtenances
thereto for research work as to the prevalence, cause, cure, and pre-
vention of disease.

Section 8. The Director with the consent of the Fiscal Court
may establish a schedule of fees for inspections and services necessary
to carry out the provisions of this act.

SB 4: AN ACT relating to Public Welfare Services and Public
Welfare Departments in Cities of the First Class and in Counties
containing such a City.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. In each county containing a city of the first class the
fiscal court of said county may, by resolution, establish a department
of welfare to be governed by the provisions of this act. Such depart-
‘ ment shall function from a date specified in such resolution. The de-
partment shall consist of a Director of Welfare and such assistants and
other employees as are necessary for the efficient performance of the
welfare services of the county.

Section 2. The Director shall be appointed by the fiscal court.
The Director shall be trained and experienced in public welfare ad-
ministration. Subject to rules and regulations approved by the fiscal
court, the Director shall have full charge of the department, with
power to employ and dismiss employees subject to the limitations of
Section 8 of this act. The Director shall perpare for submission to and
approval of the fiscal court an annual budget, authorize expenditures
in conformity with the budget and prepare an annual report of the
activities and expenditures of the department for submission to the
fiscal court. Before entering upon the discharge of his duties the
Director shall give a bond approved by the fiscal court, and the fiscal
court may, in its discretion, require bonds for other employees within
the department.

Section 3. The department shall administer the public welfare
functions of the county, which shall include, but not be limited to,
public assistance, general assistance, institutional care of children and
adults, social services to families and individuals, and child welfare
services, except as otherwise provided by law. Services shall not be
limited to financial aid.

Section 4. By agreement between the fiscal court of the county
and the Mayor and Board of Aldermen of the City, the department may
succeed to the property and functions of the board of a city-county

62 JOURNAL OF THE Mar. 5

children’s home established under Chapter 201 Kentucky Revised
Statutes, to any extent as to management, operation, maintenance and
ownership as said agreement may authorize and direct. In the event
that such agreement so provides, the board of the city-county chil-
dren’s home shall take all proper steps to effect the legal transfer of
title to its property as directed by said agreement.

Section 5. (a) The department may administer or assist in ad-
ministering any state or local public welfare function by agreement
between the Fiscal Court and the legislative body or officers, depart-
ment or agency in which the responsibility for administration of such
activity is vested. Such agreements may include the performance of
any duties and the exercise of any powers imposed upon or vested in
such legislative body or officer, department or agency, with respect to
the administration of such function. Such agreement shall be in writing
by the other party to the agreement, in the necessary form, and the
acceptance shall be in the form of a resolution of the Fiscal Court.
When such resolution becomes effective the exercise of the powers
and duties to which the agreement relates, including those provided
in Kentucky Revised Statutes 98.010, shall be transferred to the de-
partment and the other party shall be exempt from all further respon-
sibility for the exercise of the powers and duties so transferred during
the life of the agreement.

(b) Such agreement may be revoked at the option of either party
by a resolution or ordinance or order of the revoking party filed in the
office of the county clerk, and a copy shall be delivered to the other
party. Such revocation shall become effective at the end of the fiscal
year occurring at least one year following the filing of said resolution
or order. In the absence of such revocation so filed, the agreement
shall continue indefinitely.

(c) The transfer of property and records of other state or local
public welfare activities shall be according to the terms of the agree-
ment.

Section 6. The fiscal court shall appoint a bipartisan county
welfare advisory board of not less than five nor more than nine
residents of the county. The members shall be appointed in such a
manner that the term of at least one member shall expire annually.
Any vacancy shall be filled for the unexpired term in the same manner
as the original appointment. Members of the county welfare advisory
board shall serve without compensation.

The county welfare advisory board shall suggest rules and regula-
tions to the county director of welfare with respect to the organization
of the county department of welfare, and shall advise the director and
the fiscal court with respect to budget estimates, policies and other
problems of welfare activities.

Section 7. All property used in the functions of the department

Mar. 5 HOUSE OF REPRESENTATIVES 63

shall be property of the county except as provided in any contract or
agreement executed pursuant to Section 4 and Section 5 of this act.

Section 8. The personnel of the department except the Director
of Welfare and his private secretary shall be in the classified service
from the date of the establishment of the department; and until such
time as the county as an appropriate civil service facility, the positions
and places of employment shall be subject to the jurisdiction of the
civil service board of the first class city contained in such county and
shall be governed by and made subject to the provisions of Kentucky
Revised Statutes 90.110 to 90.240, with the exception of Kentucky
Revised Statutes 90.210. Insofar as practicable and as may be provided
for in any agreements executed in pursuance of this act, all employees
holding positions in the classified civil service, who have been ap-
pointed on the basis of a competitive examination and whose duties
are transferred or may be transferred to the County Department of
Welfare, shall be utilized for duties of a similar character and in the
same class by the appointing authority. Persons not in the classified
service, upon transfer, shall be included in the classified service here-
under and shall be considered as having satisfied all the requirements
for obtaining original appointments and having completed their pro-
bationary periods of employment in the same or similar class or posit-
ion held at the time of their transfer. The employees of any local public
welfare department or agency administered by the department under
Section 4 and Section 5 of this act shall be, insofar as it is economical
and as may be provided in any agreements executed in pursuance of
this Act, retained as employees of the department and become subject
to the laws, rules and regulations of the classified service, as are other
employees of the department. This section shall not be construed to
compel the appointment of more employees than are necessary to
perform properly the duties of the department nor as applying to
persons employed Jess than six months prior to their transfer to the
department.

Section 9. The fiscal court shall reimburse the city of the first
class for costs incurred by the city civil service board by reason of the
requirement of Section 8 of this act, as may be provided for in any
agreements executed pursuant to this act.

Section 10. The provisions of Kentucky Revised Statutes Chapter
201, relating to the establishment of a board for city and county
children’s home, shall be suspended upon the transfer of control of
the functions and property of said boards as provided in Section 4
of this act, during the term of such agreement.

Section 11. The provisions of Kentucky Revised Statutes 98.190
to 98.290, relating to the establishment of a city and county board of
public welfare in counties containing a city of the first class, are here-
by repealed.

64 JOURNAL OF THE Mar. 5

SB 6: AN ACT relating to elections.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Section 116.010 of the Kentucky Revised Statutes
is amended to read as follows:

There shall be a State Board of Election Commissioners con-
sisting of the Secretary of State and two commissioners appointed. by
the Governor, in the month of April each year, for a term of one
year and until their successors are appointed and qualified. The
appointed commissioners shall be at least 25 years of age and shall
be qualified electors of this state. One commissioner shall be ap-
pointed from each of the two political parties that hold the largest
vote in the last preceding election for state officials or presidential
electors. If names are designated to the Governor in writing by
the state central committees of the parties, the appointments shall be
made from those names. The commissioners shall qualify by taking,
before the Secretary of State, an oath faithfully to perform their duties
according to law. The Secretary of State shall make a certificate
of the qualification, which shall be noted upon the record of the
proceedings of the board and preserved among its records. Vacan-
cies shall be filled by appointment by the Governor in the same
manner as provided for original appointments, and the person ap-
pointed to fill the vacancy shall be of the same political party as
his predecessor.

Section 2. Section 116.030 of the Kentucky Revised Statutes is
amended to read as follows:

The State Board of Election Commissioners shall meet at the
Capital, where a suitable room shall be provided in a state building.
The Secretary of State shall mail notice of the time and place of
meeting to each member of the board before any meeting is held,
and any action of the board at a meeting held without such notice
having been given shall be void. A majority of the board shall con-
stitute a quorum for the transaction of any business. The Secretary
of State shall preside at the meetings of the board and in case of
disagreement between the other members he may vote.

Section 2 A. Section 116.040 of the Kentucky Revised Statutes
is amended to read as follows:

There shall be a county board of election commissioners, consist-
ing of the sheriff of the county and two commissioners appointed by
the State Board of Election Commissioners, not later than the first
Saturday in May, for a term of one year and until their successors are
appointed and qualified. Where from any cause the sheriff cannot
act, the circuit clerk shall act in his place. The appointed commissioners
shall be at least twenty-five years of age and shall be qualified electors
of the county from which they are appointed. One commissioner shall

Mar. 5 HOUSE OF REPRESENTATIVES 65

be appointed from each of the two political parties that polled the
largest number of votes in the state at the last preceding election for
state officers or presidential electors. If lists of five names are desig-
nated to the state board in writing by the county executive committees
of the parties, the appointments shall be made from those lists. If there
are two or more contending executive committees of the same party in
the county, the committee that is recognized by the state central com-
mittee, by written certificate of the chairman thereof, shall be recog-
nized by the state board in making the appointments. The county
commissioners shall qualify by taking, before the county clerk, an
oath faithfully to perform their duties according to law. The clerk
shall make a certificate of the oath and file it in his office. Vacancies
shall be filled by appointment by the state board from the names
already designated, and the person appointed to fill the vacancy shall
be of the same political party as his predecessor.

Section 3. Section 117.795 of the Kentucky Revised Statutes is
amended to read as follows:

(1) In counties containing a first-class city, each member of the
county board of registration and purgation shall receive compensation
of not less than twelve hundred dollars per year, the exact amount to
be fixed by the fiscal court and paid monthly. In all other counties,
each member of the county board, and the secretary thereof, shall
receive compensation of fifteen dollars per day for each day in session,
and, in addition, the secretary may receive compensation for fifteen
days while the board is not in session. The compensation of mem-
bers of county boards of registration and purgation in counties other
than those containing a city of the first class shall be paid one-half
by the fiscal court and one-half by the state. No board member
shall be paid for more than thirty-four days in each year.

(2) In counties that do not have a city of the first class, the
board shall meet for not more than thirty-two days each year, for
five days after the closing of registration books before each primary
election, for five days after the closing of registration books before
each general election for twenty days at any other time of the year
when the registration books are open, provided that no part of the
twenty-day period shall occur later than seventy-nine days before
the May primary election or the general election, and, for the per-
formance of the duties set out in KRS 117.850, for two days after the
registration books are opened following each primary election. In
counties having a city of the first class, the board may meet at any
time necessary to perform its duties, and shall remain in session for
the purpose of hearing challenges continuously from the date that the
registration books are closed before any primary or regular election,
but in all counties the purgation must be concluded at least twenty
days before any primary or general election. In all counties the board
shall hold all of its meetings at the courthouse unless it is necessary
that it hold meetings at some other place in the county, but no meeting

66 JOURNAL OF THE Mar. 5

shall be held at any other place in the county unless the persons
affected by the meeting are given written notice of its time and place.

(3) If any county board fails to meet as herein required and
fails to make a diligent effort to effect an adequate purgation, then
any citizen of the county may prefer charges against said board
before the state board, which charges shall be heard and disposed
of within five days after notice has been given to the county board
for five days. If after the hearing the state board determines that
the county board has failed to make a diligent effort to effect an
adequate purgation, the state board shall direct the county board to
act, and, in the event the county board fails to act within fifteen days,
the state board shall declare all positions on the county board vacant
and appoint a new board. If the state board fails to act on said charges
as herein provided then said citizen may apply for a summary manda-
tory order to the circuit court judge of the county.

Section 4. Section 122.170 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Any elector who was qualified to and did vote on any
constitutional amendment submitted to the voters of the state for
their ratification or rejection may contest the election or demand a
recount of the ballots by filing a petition, not more than fifteen days
after the official canvass and the announcement of the vote for the
state by the State Board of Election Commissioners, with the clerk
of the Franklin Circuit Court, which court shall have exclusive juris-
diction to hear and determine all matters in such cases. The petition
shall set forth the grounds of the contest. The contestant may file
with the clerk of the Franklin Circuit Court and the Secretary of
State a notice of his intention to contest the election before the an-
nouncement of the official count by the State Board of Election Com-
missioners, and thereupon the Secretary of State shall forthwith notify
all the county boards of election commissioners in the counties in-
volved in the contest to hold the ballots cast at the election on the
question subject to the order of the Franklin Circuit Court. The notice
shall be served by the Secretary of State by mailing a true and cer-
tified copy of the notice of contest, and the order to hold the ballots
subject to the order of the court, by registered mail to the sheriffs of
the counties in question, and the sheriffs shall forthwith acknowledge
receipt thereof.

(2) If the Franklin Circuit Court is not in session at the time
the petition of contest is filed, the clerk of the court shall immediately
notify the judge of the filing of the petition. The judge shall, within
five days after the filing of the petition of contest, determine whether
there are sufficient grounds stated to justify the contest, and shall
thereupon require the contestants to give bonds for costs. All of the
hearings relating to the contest shall be held in the courthouse of
Franklin County.

(8) The clerk of the Franklin Circuit Court shall cause a notice

Mar. 5 HOUSE OF REPRESENTATIVES 67

of the contest to be published im some paper of general circulation
in the state within two days after the contest is filed, setting out in
the publication the substance or the grounds of contest alleged by
the contestants.

(4) Any elector who participated in the election on the amend-
ment may make himself a party as contestee in the action by filing
his petition to be made a party not later than five days after the
contest is instituted, and by giving bond of the costs as required of
the contestant. If no elector makes himself a party to the contest,
the Commonwealth’s attorney for the Franklin Circuit Court shall
attend the trial of the cause and he may file such motions and pleadings
in the cause on behalf of the Commonwealth as will insure a fair and
honest determination of the contest.

(5) All laws relating to contested elections for state offices shall
apply with equal force to contests of the character contemplated by
this section, except as otherwise provided in this section and in
KRS 122.180.

Section 5. Whereas, under the provisions of Senate Bill 100,
enacted by the 1956 Regular Session of the General Assembly, the
date of the primary election was changed to the first Tuesday after
the fourth Monday in May of each year, and

WHEREAS, it is to the interest of the people of the Common-
wealth of Kentucky that this Act take effect prior to the 1956 Primary
Election,

NOW, THEREFORE, an emergency is declared to exist and this
Act shall become effective immediately upon its passage and approval
by the Governor.

Representative Morgan moved to adjourn until 1:00 P.M., March
6th. Agreed.

68 JOURNAL OF THE Mar. 6

TUESDAY, MARCH 6, 1956
EIGHTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend H. Glenn Stephens of the South Presby-
terian Church, Frankfort.

The roll was called. All present except Baumgardner, Billington,
Breathitt, Bridgers, Casey, Embry, Flanery, Hadden, Isler, Kubale,
Lambert, Lowman, Murphy, Nunn, Nunnelley, Qualls, Ratcliffe, Ray,
Rayburn, Stith, Thomas, Weintraub and Young, who were granted
leaves of absence on motion of Representative Morgan.

Reading of the Journal for March 5th, 1956, dispensed with and
the same approved on motion of Representative Burnley.

Calendar
SB 1, SB 2 with amendments, SB 3, SB 4, SB 6, SR 3, SR 4 were
taken from the Calendar and read at length for the second time.
Ordered placed in Orders of the Day.

Recess
Representative Morgan moved that the House do now recess for
10 minutes. Agreed. At the appointed hour, the Speaker resumed the
Chair and called the House to order.

Senate Message

Announcing passage of SB 5 and SB 7. Ordered that said bills be
referred.

The Speaker named Representative Burnley to serve as Speaker
Pro Tem on March 7th.

Representative Morgan moved that the House do now recess for
10 minutes for a Rules Committee Meeting. Agreed. At the appointed
hour, the Speaker resumed the Chair and called the House to order.

Report of Committee
Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.
Committee on Rules reported SB 5 and SB 7 with the expression
of opinion that the same should pass. Read at length for the first time
and ordered placed in the Calendar.

SB 5: AN ACT relating to the operations of combined electric and
water systems in cities of the second class.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Immediately upon the effective date of any act of
the General Assembly changing the classification of any city of the
third class to a city of the second class, if such city while operating as
a city of the third class had accepted and was operating under the

Mar. 6 HOUSE OF REPRESENTATIVES 69

provisions of KRS 96.171 to KRS 96.188, inclusive, relating to the
operation of a combined electric and water system, such city of the
second class shall continue to operate such combined electric and water
plant under the provisions of said sections of the Kentucky Revised
Statutes as amended and said sections, and each of them, as amended,
hereby are adopted by reference and shall apply to such city of the
second class and the combined electric and water system of such
city of the second class shall be operated under the provisions of
KRS 96.172 and 96.188, as amended. Said sections of the Kentucky
Revised Statutes shall govern the appointment, qualifications, tenure,
powers and duties of the members of the electric and water plant
board of the city and the powers and duties of such board. The mem-
bers of such board shall hold office for the respective terms to which
they were appointed and qualified, and upon the expiration of their
respective terms and upon the occurrence of a vacancy, the appoint-
ments to fill such expired terms or such vacancies shall be made as
provided in said statutes. Such appointments shall be made by the
mayor and aproved by the legislative body of the city. All contracts
and obligations incurred by such board, and between the city and
such board, shall remain in full force and effect whether made after
or prior to such city becoming a city of the second class.

Section 2. Whereas, the General Assembly, at its regular 1956
session has passed an Act, which has been approved by the Governor,
changing the classification of a city from that of a city of the third
class to that of a city of the second class, and

Whereas, the aforesaid city, while a city of the third class, ac-
cepted and operated under the provisions of KRS 96.171 to KRS
96.188, inclusive, and ,

Whereas, unnecessary confusion would result if this Act did not

become effective prior to the effective date of the Act changing the
classification of the aforesaid city.

NOW, THEREFORE,

An emergency is declared to exist and this Act shall become ef-
fective immediately upon its passage and approval by the Governor.

SB 7: AN ACT relating to organization for publication of ad-
ministrative regulations.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Section 13 of Senate Bill 241, which is the section
added by amendment No. 8 to Senate Bill 241, of the 1956 regular
session of the General Assembly is amended to read as follows:

(1) The Legislative Research Commission shall compile, publish,
and distribute the regulations filed by state agencies in a manner which
will accommodate changes in regulations and allow distribution of any

70 JOURNAL OF THE Mar. 6

topical or organizational part of the regulations as well as all of them.
This compilation shall be known as the Kentucky Administrative Regu-
lations Service and shall constitute the official state publication of
administrative regulations.

(2) The Commission shall prescribe reasonable fees for sub-
scription to the Kentucky Administrative Regulations Service. All
fees paid to the Commission for this service shall be placed in the
State Treasury to the credit of a revolving, trust or agency fund ac-
count, for use by the Legislative Research Commission in carrying out
the provisions of this section.

Section 2. The Kentucky Administrative Regulations Service
shall be prepared under the direct supervision of an attorney appointed
by the Director of the Legislative Research Commission and desig-
nated the Regulations Compiler. The Director shall cause to be pre-
pared a certificate to the effect that the text of the regulations as
printed in this service is correct. One copy of the Kentucky Ad-
ministrative Regulations Service with the original certificate therein
shall be maintained in the office of the Secretary of State. All other
copies shall contain a printed copy of the certificate and shall con-
stitute prima facie evidence of the law in all courts and proceedings.

Section 3. Section 13.100 of the Kentucky Revised Statutes is
amended to read as follows:

The Legislative Research Commission’s authenticated file stamp
on a rule or regulation, or publication of a rule or regulation in the
Kentucky Administrative Regulations Service shall raise a rebuttable
presumption that the rule or regulation was adopted and filed in com-
pliance with all requirements necessary to make it effective.

Representative Morgan moved to adjourn until 10:00 A.M.,
March 7th. Agreed.

Mar. 7 HOUSE OF REPRESENTATIVES 71

WEDNESDAY, MARCH 7, 1956
NINTH LEGISLATIVE DAY

The House was called to order by Speaker Pro Tem Burnley.

Prayer by the Reverend H. Glenn Stephens of the South Presby-
terian Church, Frankfort.

The roll was called. All present except Baumgardner, Bridgers,
Farmer, Lambert, Murphy, Nunnelley, John B. Reed, Vernon Reed,
Thompson, and Weintraub, who were granted leaves of absence on
motion of Representative Morgan.

Senate Message
Announcing passage of SR 5. Ordered that said resolution be re-
ferred.
Reading of the Journal for March 6, 1956, dispensed with and
the same approved on motion of Representative Isler.

Calendar
SB 5 and SB 7 were taken from the Calendar and read at length for
the second time. Ordered placed in Orders of the Day.

Orders of the Day

Representative Morgan moved that SR 4 be taken from the Orders
of the Day and placed on passage. Agreed. SR 4 adopted.

SR 3 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 74—Anderson, Barnum, Bates,
Beshear, Billington, Blankenship, Blue, Breathitt, Breckinridge,
Buchanan, Burnley, Bush, Carter, Caudill, Conrad, Cornett, Davis,
Day, Dunsil, Flanery, Freeman, Gay, Grigsby, Grundy, Gullette,
Hadden, Hahn, Harris, Hawkins, Heskamp, Heyburn, Highland,
Hilton, Hinkle, Hislope, Holsclaw, C. S. Howard, D. W. Howard,
Isler, Jennings, Johnson, Mackey, Martin, McCallum, McFadden,
McKinney, Miller, Moore, Morgan, Mullins, Newsom, Nunn, Ocker-
man, Parrish, Peace, Pollitte, Qualls, Ratcliffe, Ray, H. V. Reid,
R. Reid, Sr., Reynolds, Saylor, Searcy, Sloan, Stith, Thomas, Walsh,
Wathen, A. W. Wells, L. B. Wells, Williamson, Wirsch Young. Nays—0.

SR 3 was passed and the title agreed to.

Representative Morgan moved that the vote by which said reso-
lution was passed be reconsidered and said motion be laid on the
table. Agreed.

Representative Morgan moved that SR 5 be taken from the Orders
of the Day and placed on passage. Agreed. SR 5 adopted.

SB 1 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Harris moved that it be placed on

72 JOURNAL OF THE Mar. 7

passage. Agreed. Read at length the third time. Representative Harris
moved the Previous Question. Agreed.

On roll call, the vote was yeas 73—Anderson, Barnum, Bates,
Beshear, Billington, Blankenship, Blue, Breathitt, Breckinridge,
Buchanan, Burnley, Carter, Caudill, Conrad, Cornett, Davis, Day,
Dunsil, Embry, Flanery, Gay, Griffin, Grigsby, Grundy, Gullette,
Hadden, Hahn, Harris, Hawkins, Heyburn, Highland, Hilton, Hinkle,
Hislope, Holsclaw, C. S$. Howard, D. W. Howard, Isler, Jennings,
Johnson, Kubale, Mackey, Martin, McCallum, McFadden, McKinney,
Melton, Miller, Moore, Morgan, Mullins, Nunn, Ockerman, Parrish,
Peace, Pollitte, Ratcliffe, Ray, H. V. Reid, R. Reid, Sr., Reynolds,
Saylor, Searcy, Sloan, Stith, Tanner, Thomas, Walsh, Wathen, A. W.
Wells, L. B. Wells, Williamson, Wirsch. Nays—0.

SB 1 was passed and the title agreed to.
Representative Harris moved that the vote by which said bill was
passed be reconsidered and said motion be laid on the table. Agreed.

SB 2 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length for the third time. Representative
Morgan moved the Previous Question. Agreed.

On roll call, the vote was yeas 77—Anderson, Barnum, Bates,
Beshear, Billington, Blankenship, Blue, Breathitt, Breckinridge,
Buchanan, Burnley, Bush, Carter, Caudill, Conrad, Cornett, Davis,
Day, Dunsil, Embry, Everett, Flanery, Freeman, Gay, Griffin, Grigsby,
Grundy, Gullette, Hadden, Hahn, Harris, Hawkins, Heskamp, Heyburn,
Highland, Hilton, Hinkle, Hislope, Holsclaw, C. S. Howard, Isler,
Jennings, Johnson, Kubale, Mackey, Martin, McCallum, McFadden,
McKinney, Melton, Miller, Moore, Morgan, Mullins, Nunn, Ocker-
man, Parrish, Peace, Pollitte, Qualls, Ratcliffe, Ray, Rayburn, H. V.
Reid, R. Reid, Sr., Reynolds, Saylor, Searcy, Sloan, Stith, Thomas,
Walsh, Wathen, A. W. Wells, Williamson, Wirsch, Young. Nays 2—
D. W. Howard, L. B. Wells.

SB 2 was passed and the title agreed to.

Representative Morgan moved that the vote by which SB 2 was
passed be reconsidered. Agreed.

Representative Morgan moved to amend SB 2 as follows:

“Amend printed copy of SB 2 on page 5, section 2, line 1, by
inserting after the figure “(9)” and before the word “and”, the follow-
ing: “(35)”. Adopted.

Representative Morgan moved to amend SB 2 as follows:

“Amend printed copy of SB 2 on page 5, section 2, insert after
line 9 and before line 10, the following: (85) Thirty-fifth district. Pike
County, at Pikeville, continuous session.’” Adopted.

SB 2 read at length as amended. Representative Morgan moved
the Previous Question. Agreed.

Mar. 7 HOUSE OF REPRESENTATIVES 73

On roll call, the vote was yeas 72—Anderson, Barnum, Bates,
Beshear, Billington, Blankenship, Blue, Breathitt, Breckinridge,
Buchanan, Burnley, Bush, Carter, Caudill, Conrad, Cornett, Davis,
Day, Dunsil, Embry, Everett, Flanery, Greene, Griffin, Grigsby,
Grundy, Gullette, Hadden, Hahn, Harris, Hawkins, Heskamp, Hey-
burn, Highland, Hilton, Hinkle, Hislope, Holsclaw, C. S. Howard,
Isler, Jennings, Johnson, Mackey, Martin, McCallum, McFadden,
McKinney, Melton, Miller, Morgan, Mullins, Newsom, Nunn, Ocker-
man, Parrish, Peace, Pollitte, Ratcliffe, Ray, H. V. Reid, R. Reid, Sr.,
Saylor, Searcy, Sloan, Stith, Tanner, Thomas, Walsh, Wathen, A. W.
Wells, Wirsch, Young. Nays 2—D. W. Howard, L. B. Wells.

SB 2 as amended was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill as
amended was passed be reconsidered and said motion be laid on the
table. Agreed.

SB 6 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed.

Representative Ockerman moved to amend SB 6 as follows:

“Amend printed copy of SB 6 on page 2, section 2A, line 6, by
striking the word ‘later’ and inserting in lieu thereof the word ‘earlier’.”

Representative Day requested a roll call on the amendment.

On roll call, the vote was yeas 27—Blue, Breathitt, Breckinridge,
Caudill, Day, Griffin, Hadden, Heskamp, Heyburn, Highland, Hinkle,
D. W. Howard, Mackey, McCallum, McKinney, Moore, Nunn, Ocker-
man, Parrish, Peace, Ray, R. Reid, Sr., Saylor, Thomas, A. W. Wells,
Williamson, Young. Nays 42—Bates, Beshear, Billington, Blankenship,
Burnley, Bush, Carter, Casey, Conrad, Cottengim, Davidson, Davis,
Dunsil, Embry, Everett, Flanery, Freeman, Greene, Grigsby, Grundy,
Gullette, Harris, Hill, Hilton, C. S. Howard, Isler, Johnson, Kubale,
Melton, Morgan, Mullins, Newsom, Pollitte, Qualls, Ratcliffe, H. V.
Reid, Searcy, Sloan, Stith, Wathen, L. B. Wells, Wirsch.

Amendment to SB 6 was rejected. Read at length for the third
time. Representative Day moved the Previous Question. Agreed.

On roll call, the vote was yeas 46—Bates, Beshear, Billington,
Blankenship, Buchanan, Burnley, Bush, Carter, Casey, Cenrad, Cot-
tengim, Davidson, Davis, Dunsil, Embry, Flanery, Freeman, Gay,
Greene, Grigsby, Grundy, Gullette, Hahn, Harris, Heskamp, Hill,
Hilton, C. S. Howard, Isler, Jennings, Johnson, Kubale, McFadden,
Melton, Morgan, Mullins, Newsom, Qualls, Rayburn, H. V. Reid,
Searcy, Sloan, Stith, Tanner, L. B. Wells, Wirsch. Nays—34 Anderson,
Barnum, Blue, Breathitt, Breckinridge, Caudill, Cornett, Day, Everett,
Griffin, Hadden, Hawkins, Heyburn, Hinkle, Holsclaw, D. W. Howard,
Lowman, Mackey, Martin, McCallum, McKinney, Miller, Moore,
Nunn, Ockerman, Parrish, Peace, Ray, R. Reid, Sr., Thomas, Walsh,
Wathen, A. W. Wells, Young.

74 JOURNAL OF THE Mar. 7

SB 6 was defeated.

Representative Everett, seconded by Representative Blue, moved
that the vote by which SB 6 was rejected be reconsidered and laid on
the Clerk’s Desk.

Representative Day requested a roll call on reconsideration of
SB 6.

On roll call, the vote was yeas 42—Bates, Beshear, Billington,
Blankenship, Buchanan, Burnley, Bush, Carter, Casey, Conrad, Cot-
tengim, Davidson, Davis, Dunsil, Embry, Everett, Flanery, Freeman,
Greene, Grigsby, Grundy, Gullette, Harris, Hill, Hilton, C. S. Howard,
Isler, Jennings, Johnson, Kubale, McFadden, Melton, Morgan, New-
som, Qualls, H. V. Reid, Searcy, Sloan, Stith, Tanner, L. B. Wells,
Wirsch. Nays 33—Anderson, Barnum, Breathitt, Breckinridge, Caudill,
Cornett, Day, Griffin, Hadden, Heyburn, Hinkle, Holsclaw, D. W.
Howard, Lowman, Mackey, Martin, McCallum, McKinney, Miller,
Moore, Mullins, Nunn, Ockerman, Parrish, Peace, Ray, R. Reid, Sr.,
Saylor, Thomas, Walsh, Wathen, A. W. Wells, Young.

Motion to reconsider SB 6 was adopted.

Representative Morgan moved to adjourn until 11:00 A.M., March
8th. Agreed.

Mar. 8 HOUSE OF REPRESENTATIVES 75

THURSDAY, MARCH 8, 1956
TENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend Carter Roberts of the Church of the
Nazarene, Frankfort.

The roll was called. All present except Blankenship, Bridgers,
Buchanan, Flanery, Gay, Griffin, Heyburn, Durham W. Howard, Isler,
McKinney, Mealy, Newsom, Nunnelley, Reynolds, Weintraub, and
Lynn Wells, who were granted leaves of absence on motion of Rep-
resentative Morgan.

Reading of the Journal for March 7, 1956, dispensed with and the
same approved on motion of Representative Thompson.

Senate Message
Senate message announcing passage of HB 1, by way of committee
substitute, SR 7, read by Clerk.

Orders of the Day

SB 7 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length for the third time. Representative
Morgan moved the Previous Question. Agreed.

On roll call, the vote was yeas 77—Anderson, Barnum, Baum-
gardner, Beshear, Billington, Blue, Breathitt, Breckinridge, Buchanan,
Burnley, Bush, Carter, Casey, Caudill, Conrad, Cornett, Cottengim,
Davis, Day, Dunsil, Embry, Everett, Freeman, Greene, Grigsby,
Grundy, Gullette, Hadden, Hahn, Heskamp, Hill, Hilton, Hislope,
Holsclaw, C. S. Howard, Jennings, Johnson, Kubale, Lambert, Low-
man, Martin, McCallum, McFadden, Melton, Miller, Moore, Morgan,
Mullins, Nunn, Ockerman, Parrish, Peace, Pollitte, Qualls, Ratcliffe,
Ray, Rayburn, J. B. Reed, V. Reed, H. V. Reid, R. Reid, Sr., Saylor,
Searcy, Sloan, Stith, Tanner, Thomas, Thompson, Tinsley, Walsh,
Wathen, A. W. Wells, L. B. Wells, Williamson, Wilson, Wirsch, Young.
Nays 0.

SB 7 was passed and the title agreed to.
Representative Morgan moved that the vote by which said bill was
passed be reconsidered and said motion be laid on the table. Agreed.

SB 5 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 71—Anderson, Barnum, Baum-
yardner, Beshear, Billington, Blue, Breathitt, Breckinridge, Burnley,
Bush, Carter, Casey, Caudill, Conrad, Cornett, Davidson, Davis, Day,
Dunsil, Embry, Everett, Farmer, Freeman, Greene, Grigsby, Gullette,

76 JOURNAL OF THE Mar. 8

Hadden, Hahn, Heskamp, Hill, Hilton, Hinkle, Hislope, Holsclaw,
C. S. Howard, Johnson, Kubale, Lowman, Mackey, Martin, McCallum,
McFadden, Melton, Moore, Morgan, Mullins, Ockerman, Parrish,
Peace, Pollitte, Qualls, Ratcliffe, Ray, Rayburn, J. B. Reed, V. Reed,
R. Reid, Sr., Searcy, Sloan, Stith, Thomas, Thompson, Tinsley, Walsh,
Wathen, A. W. Wells, L. B. Wells, Williamson, Wilson, Wirsch, Young.
Nays 0.

SB 5 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

SB 6 taken from the Clerk’s Desk and Representative Morgan
moved that it be placed on passage. Agreed. Read at length. Repre-
sentative Morgan moved the Previous Question. Agreed.

On roll call, the vote was yeas 54—Bates, Beshear, Billington,
Buchanan, Burnley, Bush, Carter, Casey, Conrad, Cottengim, David-
son, Davis, Day, Dunsil, Embry, Everett, Fitzpatrick, Flanery, Free-
man, Greene, Grigsby, Grundy, Gullette, Harris, Hawkins, Heskamp,
Hill, Hilton, C. S. Howard, Jennings, Johnson, Kubale, McFadden,
Melton, Morgan, Mullins, Parrish, Pollitte, Qualls, Ratcliffe, Rayburn,
J. B. Reed, V. Reed, H. V. Reid, Sloan, Stith, Tanner, Thomas, Thomp-
son, Tinsley, L. B. Wells, Williamson, Wilson, Wirsch. Nays 27—
Anderson, Barnum, Baumgardner, Blue, Breathitt, Breckinridge,
Caudill, Cornett, Farmer, Hadden, Highland, Hislope, Holsclaw,
Lambert, Lowman, Mackey, Martin, Miller, Moore, Nunn, Ockerman,
Peace, Ray, R. Reid, Sr., Walsh, Wathen, Young.

SB 6 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill was
passed be reconsidered and said motion be laid on the table. Agreed.

SB 3 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Hols-
claw moved the Previous Question. Agreed.

On roll call, the vote was yeas 69—Barnum, Bates, Baumgardner,
Beshear, Billington, Blankenship, Blue, Breckinridge, Buchanan,
Burnley, Bush, Carter, Caudill, Conrad, Cornett, Davidson, Davis,
Day, Embry, Farmer, Grundy, Gullette, Hadden, Hahn, Harris, Hes-
kamp, Highland, Hilton, Hinkle, Hislope, Holsclaw, C. S. Howard,
Jennings, Johnson, Lowman, Mackey, Martin, McCallum, McFadden,
Miller, Moore, Morgan, Mullins, Nunn, Ockerman, Peace, Pollitte,
Qualls, Ratcliffe, Ray, Rayburn, J. B. Reed, V. Reed, R. Reid, Sr.,
Saylor, Searcy, Sloan, Stith, Thomas, Thompson, Tinsley, Walsh,
Wathen, A. W. Wells, L. B. Wells, Williamson, Wilson, Wirsch, Young.
Nays 1—Melton.

Mar. 8 HOUSE OF REPRESENTATIVES 77

SB 3 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill was
passed be reconsidered and said motion be laid on the table. Agreed.

SB 4 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 59—Anderson, Barnum, Bates,
Baumgardner, Beshear, Breathitt, Breckinridge, Burnley, Bush, Casey,
Caudill, Conrad, Cornett, Day, Dunsil, Flanery, Greene, Grundy,
Hadden, Hahn, Harris, Hawkins, Heskamp, Highland, Hilton, Hinkle,
Hislope, Holsclaw, C. S. Howard, Johnson, Lambert, Mackey, Martin,
McFadden, Melton, Miller, Moore, Mullins, Ockerman, Parrish, Peace,
Pollitte, Qualls, Ratcliffe, Ray, Rayburn, V. Reed, H. V. Reid, R. Reid,
Sr., Searcy, Stith, Tanner, Thomas, Thompson, Walsh, Wathen, A. W.
Wells, L. B. Wells, Wirsch. Nays 2—Cottengim, Everett.

SB 4 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved that HB 1, by way of committee
substitute, be placed on passage. Agreed.

On roll call, the vote was yeas 76—Anderson, Barnum, Bates,
Baumgardner, Beshear, Billington, Blankenship, Blue, Breathitt, Burn-
ley, Bush, Carter, Casey, Caudill, Conrad, Cornett, Cottengim, David-
son, Day, Dunsil, Embry, Everett, Farmer, Flanery, Greene, Grigsby,
Grundy, Gullette, Hadden, Hahn, Harris, Hawkins, Heskamp, High-
land, Hill, Hilton, Hinkle, Holsclaw, C. S. Howard, Isler, Johnson,
Lowman, Mackey, Martin, McCallum, McF adden, Melton, Miller,
Moore, Morgan, Mullins, Ockerman, Parrish, Peace, Pollitte, Qualls,
Ratcliffe, Ray, Rayburn, J. B. Reed, V. Reed, H. V. Reid, Saylor, Searcy,
Sloan, Stith, Thomas, Thompson, Tinsley, Walsh, Wathen, A. W. Wells,
L. B. Wells, Williamson, Wilson, Wirsch. Nays 0.

HB 1, by way of committee substitute, was passed and the title
agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved that the House concur in SR 7.
SR 7: A CONCURRENT RESOLUTION providing for sine die

adjournment of the first extraordinary session of the General Assembly
(1956).

78 JOURNAL OF THE Mar. 8

Be it resolved by the Senate of the Commonwealth of Kentucky,
the House of Representatives concurring therein:

That when the Senate and House of Representatives adjourn on
March 8, 1956, they do adjourn sine die.
SR 7 was adopted.

Report on Enrolled Bills

Committee on Enrollment reported that HB 1 had been examined
and found correctly enrolled. Said bill read at length, compared, and
signed in open session by the Speaker. Ordered delivered to the
Senate.

HB 1 delivered, signed by President of the Senate. Ordered de-
livered to the Governor.

Representative Morgan moved that the House do now recess for
80 minutes. Agreed. At the appointed time, the Speaker resumed the
Chair and called the House to order.

Committee to Wait on Governor

Representative Morgan moved that the Speaker appoint a Com-
mittee to join a like Committee from the Senate to wait upon the
Governor to notify him that the business of the House had been con-
cluded and to inquire if he has further business to communicate.
Agreed.

The Speaker appointed the following committee: Representatives
Blankenship, Melton, Thomas, Pollitte and Williamson.

Representative Melton, on behalf of the Committee, reported that
the Governor had been informed of the message from the House and
that the Governor consented to the adjournment of this Extraordinary
Session. The Governor instructed the Committee to notify the members
of his cali for the Second Extraordinary Session, and to deliver the
official proclamation calling for such Second Extraordinary Session.

Report on Enrolled Bills
Committee on Enrollment reported that SB 1, SB 2, SB 8, SB 4,
SB 5, SB 6, SB 7, SR 3, and SR 5 had been examined and found cor-
rectly enrolled. Said bills read at length, compared, and signed in open
session by the Speaker. Ordered delivered to the Senate.
Representative Morgan moved that the House adjourn sine die.
Agreed.
The Journal of the House has been read, compared and approved,
The House adjourned sine die.
APPROVED:
(Signed) THOMAS P. FITZPATRICK, Speaker
ATTEST:
(Signed) JAMES C. CUBBAGE, Chief Clerk

JOURNAL

OF THE

House of Representatives

OF THE
COMMONWEALTH OF KENTUCKY

SECOND EXTRAORDINARY SESSION OF 1956

Held in the State Capito] in the Capital City of Kentucky, at
Frankfort, in the Year of Our Lord 1956 and
in the One Hundred and Sixty-Fourth
Year of the Commonwealth

Begun on the Ninth Day of March, 1956, and Adjourned
Sine Die on the Twenty-eighth Day of March, 1956

JOURNAL OF THE SESSION
OF THE
HOUSE OF REPRESENTATIVES
OF THE COMMONWEALTH OF KENTUCKY

SECOND EXTRAORDINARY SESSION OF 1956

FRIDAY, MARCH 9, 1956
FIRST LEGISLATIVE DAY

At an Extraordinary Session of the General Assembly of the
Commonwealth of Kentucky, held at the Capitol in the City of
Frankfort, and begun on March 9, 1956, and in the one hundred and
sixty-fourth year of the Commonwealth, in compliance with a procla-
mation issued by the Governor of the Commonwealth, the House of
Representatives was called to order by the Honorable Thomas P.
Fitzpatrick, Speaker of the House of Representatives.

Prayer by the Reverend John C. Chenault of the First Christian
Church of Frankfort.

The roll was called. All present except Barnum, Baumgardner,
Blue, Breathitt, Bush, Cornett, Davidson, Dunsil, Everett, Farmer,
Gay, Grigsby, Grundy, Harris, Durham Howard, Lambert, McFadden,
McKinney, Melton, Miller, Murphy, Nunnelley, Ockerman, Peace,
Pollitte, Qualls, Ray, Rayburn, John B. Reed, Sloan, Tanner, Tinsley,
Wathen, Weintraub and Williamson, who were granted leaves of
absence on motion of Representative Morgan.

The Clerk read the following proclamation:

I, THELMA L. STOVALL, Secretary of State for the Common-
wealth of Kentucky, do certify that the foregoing writing has been
carefully compared by me with the original record thereof, now in
my official custody as Secretary of State and remaining on file in my
office, and found to be a true and correct copy of the Proclamation of
A. B. Chandler, Governor of the Commonwealth of Kentucky, con-
vening the General Assembly of the Commonwealth of Kentucky in
Extraordinary Session at the seat of Government, at Frankfort,
Kentucky, at 2:00 P.M. (CST), on Friday, March 9th, 1956.

IN WITNESS WHEREOF, I have hereunto
set my hand and affixed my official seal.
Done at Frankfort this 9th day of March, 1956
(Signed) THELMA L. STOVALL
(SEAL) Secretary of State, Commonwealth of Kentucky

82 JOURNAL OF THE Mar. 9

PROCLAMATION BY THE GOVERNOR OF THE
COMMONWEALTH OF KENTUCKY

TO ALL TO WHOM THESE PRESENTS SHALL COME:

WHEREAS, the industrial development of the Commonwealth of
Kentucky is directly dependent upon an adequate sys-
tem of highway transportation; and,

WHEREAS, the present highway transportation system is, by reasons
of existing limitations, inadequate to the needs of an
expanding economy and is detrimental to the location
and expansion of industries in the Commonwealth of
Kentucky; and,

WHEREAS, the system of highways in Kentucky is inadequate to
meet the demands of present day needs and unsafe for
modern travel; and,

WHEREAS, It is necessary to increase the revenues necessary to
the building of a modern system of highways; and,

WHEREAS, It is essential that the Department of Highways of the
Commonwealth of Kentucky consult and advise with
the fiscal courts of the various counties on the subject
of construction and improvement of secondary and rural
roads lying within certain counties:

NOW, THEREFORE, in order to accomplish the objectives herein-
above set out, and in accordance with the power vested
in me by the Constitution of Kentucky to convene the
General Assembly in Extraordinary Session, as Governor
of the Commonwealth of Kentucky, I, A. B. Chandler,
do issue this, my proclamation, convening the General
Assembly of Kentucky in Extraordinary Session at the
seat of government at Frankfort, Kentucky, at 2 p.m.
(CST) on Friday, March 9, 1956, for the sole purpose of
considering the following subjects:

(1) An Act to provide transportation by motor vehicles
over highways of the Commonwealth of Kentucky and
prescribing the permissible weight, height and length
thereof.

(2) Acts providing for the imposition of certain taxes,
all of which will accrue to the road fund of the Com-
monwealth of Kentucky.

(3) Acts relating to motor transportation and motor
vehicles and the operation thereof within and through
the Commonwealth of Kentucky.

(4) An Act contracting a debt of $100,000,000 (one
hundred million dollars) to be evidenced by a bond
issue, the proceeds from which to be used solely and

Mar. 9 HOUSE OF REPRESENTATIVES 83

only by the Department of Highways of the Common-
wealth of Kentucky to match Federal funds allocated
to the Commonwealth of Kentucky for the construction
and reconstruction of roads and bridges within the
Commonwealth of Kentucky and to become effective
only after said act has been submitted to the people
of the Commonwealth of Kentucky at the next general
election to be held on November 6, 1956 and after said
act shall have received a majority of all votes cast for
and against it.

(5) An Act relating to the selection of secondary and
rural roads for construction, reconstruction or mainte-
nance and providing for consultation with the fiscal
courts of the various counties with reference thereto.
(6) An Act relating to the control of Johnson grass on
state rights-of-way.

You will, therefore, in accordance with this proclamation, assemble
in Extraordinary Session at the seat of government at Frankfort,
Kentucky, on the day and hour above written, to consider the subjects
herein mentioned, and only said subjects.

Done at Frankfort, Kentucky, this the 8th day
of March, in the year of our Lord, one thousand
nine hundred aad: fifty-six, and in the year of the
Commonwealth the one hundred and_ sixty-
fourth.
(Signed) A. B. CHANDLER, Governor
SEAL
(Signed) Thelma L. Stovall
Secretary of State

Introduction of Resolutions
HR 1, by Representative Morgan: A RESOLUTION adopting
rules to govern the Second Extraordinary Session of the 1956 General
Assembly.

Be it resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky:

Representative Morgan moved adoption of HR 1. Adopted.

HR 2, by Representative Morgan: A RESOLUTION notifying the
Senate and the Governor that the House of Representatives is or-
ganized.

84 JOURNAL OF THE Mar, 9

Be it resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky:

That the Speaker of the House of Representatives be authorized
and directed to appoint a committee of seven members to notify the
Senate that the House of Representatives is organized and ready for
business, and that this committee meet with a like committee to be
appointed by the President of the Senate, and that said joint com-
mittee then call on the Governor of the Commonwealth of Kentucky to
notify him that this General Assembly is duly organized and ready to
receive any message that he may desire to deliver, his fixing the time
and place.

Representative Morgan moved adoption of HR 2. Adopted.

HR 3, by Representative Morgan: A JOINT RESOLUTION mak-
ing an appropriation to the Legislative Session Fund and declaring an
emergency.

Appointment of Committee

The Speaker appointed the following Committee pursuant to
HR 2: Representatives Heskamp, Casey, Wilson, Day, Vernon Reed,
Freeman and Mullins.

Joint Session

The Committee appointed to wait upon the Governor reported
that the Governor was ready to address a Joint Session of the General
Assembly.

The Senate entered upon the floor of the House and the Honorable
Harry Lee Waterfield, Lieutenant-Governor and President of the
Senate, assumed the Chair and called the Joint Session to order.

Prayer by the Reverend John C. Chenault of the First Christian
Church of Frankfort.

Representative Morgan moved that the roll call be dispensed with.
Agreed.

The Committee appointed to wait upon the Governor appeared
with His Excellency, Albert B. Chandler, Governor of the Common-
wealth of Kentucky, who took his place at the Clerk’s desk.

The Governor addressed the General Assembly as follows:

ADDRESS BY GOVERNOR A. B. CHANDLER
BEFORE A JOINT SESSION OF THE KENTUCKY GENERAL
ASSEMBLY IN EXTRAORDINARY SESSION MARCH 9, 1956

I have expressed to you frequently — and to the people of Ken-
tucky more frequently—my determination to bring to the cities and
towns of Kentucky new industries which will provide employment for
our people and sources of revenue for the operation of our state. I .
had the great pleasure this week of announcing the location of a very
substantial industry in Oldham County which will increase the per
capita income of that community greatly. This is only the beginning
of what I hope will be a parade of industries.

Mar. 9 HOUSE OF REPRESENTATIVES 85

In my negotiations with industrial leaders who indicate an interest
in bringing their operations to Kentucky two questions inevitably arise:
(1) the adequacy of our highways, and, (2) the adequacy of our high-
way transportation system. I cannot give a satisfactory answer to
these inquiries, nor can they be answered favorably by any of the
state agencies who are undertaking to bring industries into Kentucky.
A realistic appraisal of our situation brings us to the inescapable con-
clusion that we must take immediate action to improve our system of
highways on a scale not yet attempted in Kentucky. An equally
realistic view of the situation requires that, at the same time, we
bring our highway transportation system up to date and in line with
the states which surround us. These subjects are interrelated and have
been reserved for your special consideration.

The highway problem is a national problem. In this area of
government, as in so many others, the states find themselves unable
to cope with the demande placed upon them because the Federal
Government has removed from our reach sources of taxation which
otherwise would be available to us. As respects interstate highways,
it now appears that the Federal Government is about to “face up to
the situation”, and to make available to the states on a matching
basis a large sum of money for the construction of interstate highways.
Neither the overall amount of Federal funds, nor the allocation basis
has been determined, but the best available information is that
Federal funds will be made available to the states for interstate high-
ways on the basis of $9.00 Federal money for $1.00 of state money.
This situation makes it imperative that this Legislature provide funds
for the purpose of matching Federal funds on whatever basis they
may be allocated.

To meet this situation you will be asked to contract a debt on
behalf of the Commonwealth in the amount of One Hundred Million
Dollars subject, however, to the will of a majority of the people of
Kentucky when the question is presented to them at the regular
election in November, 1956. I was opposed to the Highway Authority
Act enacted by a former Legislature which, by a leasing device, would
have permitted the Department of Highways to contract a debt
without limitation and without a vote of the people. No debt should
ever be fastened upon the people of Kentucky without their consent.
I, for one, would not want a Legislature, or a Governor, or an Ad-
ministration, to contract a debt on my behalf without my consent.
The Highway Authority Act was held unconstitutional as violating
Section 50 of the Constitution of Kentucky which plainly provides
that any debt contracted on behalf of the Commonwealth shall not
become effective until it has been submitted to the people at a
general election and has received a majority of all the votes cast for
and against it. When the Constitution has been observed, the people
of Kentucky have a perfect right to provide for future, permanent
improvement for their welfare aud comfort provided the act which

86 JOURNAL OF THE Mar. 9

creates the debt provides for the levy and collection of an annual tax
sufficient to pay the debt and the interest thereupon within 30 years.

The Act which will be submitted to you makes ample provision
for the retirement of the debt and the interest thereupon within the
30-year period required by the Constitution.

The enactment of this legislation and its approval by a majority of
Kentuckians will probably mean that interstate highways in Kentucky
to the extent of One Billion Dollars may be built within the foreseeable
future. The advantages which will flow from such action can hardly
be calculated. Failure to enact into law the legislation which will be
submitted to you would, on the other hand, be disasterous to the
future development and progress of our Commonwealth.

There are those who have said that the enactment of this legis-
lation and the submission of the question to the people of Kentucky
should wait until the Federal legislation has become effective. These
critics fail to take into account the fact that this Act cannot be voted
upon until November, 1956, by which time, in all probability, the
Federal law will be enacted. They also fail to take into account the
provisions of the Act which, of course, they had not seen, which pro-
vides that bonds may be issued as needed for the sole and only purpose
of matching Federal funds for the construction of interstate high-
ways. If the funds are not needed for that purpose the bonds will
not be issued. It is as simple as that. Consider for a moment the
dilemma which would arise if we hesitated. Suppose no legislation
were passed and the Congress about the time of adjournment, which
normally is November, should enact the Federal legislation which
appears to be a certainty. It would then be required that the Legis-
lature be called into Extraordinary Session and that we wait until
November, 1957 to submit the question to the people. In the meantime,
we would not have funds sufficient to match the expected Federal
allocation. The legislation which you will receive plainly provides
that the proceeds of the bond issue will be used only to match Federal
funds and if the Federal funds are not available for matching, then
the bonds would not and could not legally be issued.

The effect of favorable action on the legislation which will be
presented to you will be felt far beyond interstate highways. When the
funds provided by the bond issue are used to match Federal funds
for interstate highways then, of course, other funds will be released
for the building of secondary and rural roads. There is not a single
county in the Commonwealth of Kentucky which will not be benefited
by the passage of the bond issue which I recommend.

Now to consider the second important aspect of the call: For
many years Kentucky has been a detour state for interstate trucking.
All of the states which surround us have load limits and dimensions
far in excess of those in Kentucky. Trucks moving across Kentucky
are required either to reduce their loads at the borders of Kentucky
or avoid the state which, of course, creates an impossible situation.

Mar. 9 HOUSE OF REPRESENTATIVES 87

The free flow of commerce is absolutely essential to the commercial
progress and development of a state. A dramatic illustration of the
impossible situation which now exists can be found at Doe Run,
Kentucky where the Mathieson Hydrocarbon Chemical Company has
an enormous operation. Truck transportation is absolutely essential
to the operation of this industry. Its products move principally to the
Eastern Seaboard through states which permit greater load limits
than are permitted in Kentucky. In order for this industry to move
its products by tank truck it is required that the trucks be ferried across
the Ohio River into Indiana in order that they may be utilized. We
cannot expect industries to come to Kentucky if they are hindered
and hampered by a highway transportation system which precludes
their ordinary growth and development. As long ago as December,
1953, a report on Kentucky State Highways prepared by engineers,
one of whom was a former highway commissioner of Kentucky,
recommended:

“The best information available indicates that (a) Existing
roadways designed for 18,000 pound single axle loads are ade-
quate for those axle loads with certain minor exceptions noted
elsewhere in this report. If this is true, and in our professional
opinion, it is, these same roadway facilities are adequate for any
gross weight or gross load (no matter how great) provided that
a single axle load of 18,000 lbs. and an axle spacing of not less
than 4 feet is observed.

“On the Class ‘A’ system of highways designed for heavy
trucking operations, the present legal gross weight limit of 42,000
Ibs. is inconsistent with the 18,000 Ibs. single and the 36,000 Ibs.
tandem axle loads now permitted. The existing gross weight limit
is restrictive and unrealistic.

“The Class ‘A’ roads are now adequate for vehicles of greater
gross weight, keeping the present maximum axle loads and length
but with a proper spacing of axles in compliance with the
AASHO recommendations.

“Bridges on the Class ‘A’ system are now adequate for the
proposed increased gross weight except for a comparatively few
substandard structures which when replaced will be adequate.”

The study made in 1953 recommended increasing the permitted
length of truck-trailers to 50 feet and increasing weights to between
56,800 pounds and 60,800 pounds depending on a 45 to 50 foot length
and permitting the Commissioner of Highways to designate the
highways over which these trucks may travel. The most recent study
of our highway problem was culminated in November, 1955. The
study was made by the Automotive Safety Foundation in cooperation
with the Department of Highways of the Commonwealth of Ken-
Bere I have that report before me, and it provides, at page 51, as
ollows:

88 JOURNAL OF THE Mar. 9

“Most of the highways now designated as ‘A’ Routes are capable
of carrying weights permitted under the ASSHO (American
Association of State Highway Officials) recommendations. The
proposed improvement programs would progressively qualify
all important carrier routes for operation under these regulations.
Therefore, it is recommended that present legislation be repealed,
and that the limitations recommended by the American Associa-
tion of State Highway Officials be adopted as the basic regula-
tions of commercial vehicle size and weight in Kentucky.”

The report of the Automotive Safety Foundation then states further
its recommendations which are somewhat complex, but the recom-
mended weight and dimensions of the legislation which will be pre-
sented to you is well within the limitation recommended by the
American Association of State Highway Officials and the Automotive
Safety Foundation. From these scientific studies—and from others
which could be produced—it is very obvious that weight limitation on
truck-semi-trailers in Kentucky is unrealistic, unnecessary and a very
serious impediment to the commercial development of the state which
must be removed if we are to achieve any degree of industrial im-
provement.

The bill which will be presented to you keeps in effect the present
height and width of trucks and truck-trailers. It permits an overall
length of 48 feet as against the 45 feet which is now the law of the
state, even though the students of the subject recommend a greater
length. Weight limits permitted by the new legislation would permit
a truck-semi-trailer to carry a gross weight of 59,640 pounds on axles
in tandem arrangement, but also provides that no more than 16,000
pounds may be carried on any such axle. Trucks and _truck-semi-
trailers presently operating—with no more than three axles—would not
be disturbed and could continue to operate as they do at the present
time.

To compensate for the additional weight to be carried on truck-
semi-trailer combinations with axles in tandem arrangements an
additional two cents per gallon on motor fuels will be imposed by
legislation which will be submitted to you. Most of the students of
the question believe that the best method of taxing interstate trucking
operations is to require such an operator to license his fleet in Kentucky
in proportion to the ratio between miles traveled by him in Kentucky
as against miles traveled elsewhere. We, however, are not prepared at
this time to enact such legislation, for I am advised it would impair
reciprocal arrangements between Kentucky and other states and
would impede the flow of commerce between the states. The proposed
legislation carries a provision requiring the Department of Motor
Transportation to negotiate with other states in the United States
with a view to recommending a method of proportionate licensing
to the 1958 General Assembly which, it is believed, is the better way
to deal with a complicated situation.

Mar. 9 HOUSE OF REPRESENTATIVES 89

The method of taxation, however, which is recommended to you
—namely, the imposition of an additional tax of two cents on motor
fuels used by heavy equipment operators follows generally legislation
which has just been enacted into law without a dissenting vote by the
Legislature of Virginia and which, we believe, is fair under all the
circumstances.

At the present time, under a 1954 Act which requires interstate
operators of commercial vehicles to report and pay motor fuels taxes on
such fuel used or which should have been used in Kentucky, such
operators are contributing to the road fund about $1,800,000 a year.
It is estimated that the increase in revenues to the road fund which
will flow from the increased taxes on motor fuels which I have de-
scribed and other tax measures which will be submitted to you during
this session will approximate $2,200,000. The combination of these
funds—about $4,000,000—will retire the recommended bond issue over
a period of 30 years, assuming it bears an interest rate of 24% or less.
Thus, I am about to submit to you a plan which, if enacted in its
entirety, will permit matching funds which are indispensable to the
construction of a system of interstate highways; which will release
funds now used for matching purposes for the building of secondary
and rural roads, the cost of which will be borne entirely, or sub-
stantially, by the commercial users of our highways. This, I believe,
is ‘a consummation devoutly to be wished’. I can think of no greater
disaster that could come upon the state than to defeat such a plan.

This entire plan will be embraced in a series of separate bills. In
some instances they deal with the elimination of certain exemptions
and in others they relate directly to revenue and taxation. The bills are
simple—easily understood—and have been prepared with great care.
One of them will permit Kentucky to realize approximately a quarter
of a million dollars on gasoline stored for use by the Federal Govern-
ment and this makes me very happy, for I am searching for ways
whereby we can retrieve some portion of revenues which we lose to
Uncle Sam.

I hope you will enact these measures into law, for they constitute,
in their entirety, a solemn promise which I made to the people of
Kentucky and which I am determined to carry into effect. I shall be
grateful for your cooperation for I want you to share with me the
very great contribution which jointly we can make to the progress
and welfare of our beloved Commonwealth.

Representative Morgan moved that the Joint Session of the Gen-
eral Assembly do now dissolve. Agreed.

The Speaker resumed the Chair and called the House to order.

Representative Morgan moved the rules be suspended for intro-
duction of a resolution. Agreed.

90 JOURNAL OF THE Mar. 9

Introduction of Resolutions
HR 4, by Representative Morgan: A RESOLUTION commending
the basketball team of Morehead State College, and its Coach Robert
Laughlin, for its achievements during the 1955-1956 season.

WHEREAS, the basketball team of Morehead State College has
compiled an excellent record for the 1955-1956 season against the
better teams of the nation; and

WHEREAS, said team has averaged 96.5 points per game; and

WHEREAS, said average represents the highest scoring average
of any team in the United States; and

WHEREAS, said team has exceeded the all time total scoring
record for a major college team for a single season; and

WHEREAS, said team number among its players the third highest
individual scorer in the nation in the person of Dan Swartz; and

WHEREAS, Robert Laughlin coach of the Morehead State Col-
lege basketball team has performed his duties admirably, not only
in his professional capacity but also as a builder of character and moral
integrity of the players; and

WHEREAS, the basketball team of Morehead State College will
be one representative of the Commonwealth of Kentucky in the Na-
tional Collegiate Association tournament.

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky:

That the 1956 session of the House of Representatives does hereby
express its commendation to the basketball team of Morehead State
College and to its coach, Robert Laughlin, for the honor and glory
which it has brought to the Commonwealth by its achievements during
the 1955-1956 season.

Representative Morgan moved adoption of HR 4. Adopted.

HR 5, by Representative Day: A JOINT RESOLUTION providing
for study by the Department of Highways regarding the establishing
of a highway atop the proposed Markland Dam and possible source
of revenue to assist in financing same.

Representative Morgan moved that the House adjourn until 8:00
P.M., March 13th. Agreed.

Mar. 13 HOUSE OF REPRESENTATIVES 91

TUESDAY, MARCH 138, 1956
FOURTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend John C. Chenault of the First Christian
Church, Frankfort.

The roll was called. All present except Billington, Blue, Breathitt,
Carter, Casey, Caudill, Conrad, Grundy, Hadden, McCallum, Murphy,
Nunn, Nunnelley, Pollitte, Qualls, Rayburn, Vernon Reed, Sloan,
Stith, Thomas, Tinsley, Walsh, Weintraub, Williamson, and Young,
who were granted leaves of absence on motion of Representative
Morgan.

Reading of the Journal for March 9, 1956, dispensed with and the
same approved on motion of Representative Isler.

Introduction of Bills
HB 1, by Representative Morgan: AN ACT relating to motor
transportation and motor vehicles.

HB 2, by Representative Morgan: AN ACT relating to the regis-
tration of trailers, semi-trailers and house-trailers.

HB 3, by Representative Morgan: AN ACT relating to motor trans-
portation and motor vehicles.

HB 4, by Representative Morgan: AN ACT relating to the excise
tax on gasoline.

HB 5, by Representative Breckinridge: AN ACT relating to motor
transportation and motor vehicles and the operation thereof within
and through the Commonwealth of Kentucky.

HB 6, by Representative Breckinridge: AN ACT relating to the
selection of secondary and rural roads for construction, reconstruction
or maintenance and providing for consultation with the fiscal courts
of the various counties with reference thereto.

Representative Morgan moved that the House do now recess for
30 minutes for a Rules Committee Meeting. Agreed. At the appointed
hour, the Speaker resumed the Chair and called the House to order.

Report of Committee
Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.
Committee on Rules reported HB 1, HB 2, HB 3, HB 4, and HR 8
with the expression of opinion that the same should pass. Read at
length for the first time and ordered placed in the Calendar.

HB 1: AN ACT relating to motor transportation and motor ve-
hicles.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

92 JOURNAL OF THE Mar. 138

Section 1. Section 186.050 of the Kentucky Revised Statutes is
hereby amended to read as follows:

(i) The annual registration fee for motor vehicles, including
taxicabs, primarily designed for carrying passengers and having pro-
visions for not more than nine passengers, including the operator, shall
be $4.50.

(2) The annual registration fee for each motorcycle shall be
$2.00, and for each sidecar attachment, $1.00.

(3) All motor vehicles except those mentioned in subsection (1)
and (2), and those engaged in hauling passengers for hire operating
under certificates of convenience and necessity, are classified as trucks
or busses, and the annual registration fee, except as provided in sub-
sections (4) through (8), shall be as follows:

Gross Weight Registration Fee
0- 5000 coe once eee ee ee esos tess $ 10.00
5001- 8000 ___.._-_----------------- 22.00
8001-10000 __.___-__---------------- 25.00
10001-12000 ______....------....-----+-.-.-- 29.00
12001-14000 __.-.-------------------- 32.00
14001-16000 _____-.....-----....----------- 86.00
16001-18000 _..___----_-------------- 40.00
18001-21000 ___-._-_-_---------------- 45.00
91001-24000 .......---_---....--------...-- 50.00
94001-27000 _._---------------------- 59.00
97001-30000 __.__-....--------...-------- 71.00
80001-33000 ___..---_---------------- 85.00
33001-86000 _..-_..------------------ 101.00
36001-39000 __--_-_.----------------- 123.00
39001 or over _-.__--__--------------- 150.00

The registration fee shall be increased fifty percent on any motor
vehicle not equipped wholly with pneumatic tires.

(4) Any farmer owning a truck having a gross weight of 22,000
pounds or less may have it registered as a farmer's truck and obtain
a license for $4.50 by filing with the county clerk, in addition to other
information required, an affidavit, stating that he is a farmer engaged
solely in the production of crops, livestock or dairy products, that he
owns a truck of the gross weight of 22,000 pounds or less, that he has
caused to be printed upon each side of the bed of the truck the words
“Farmer's Truck” in conspicuous letters not less than three inches in
height, and that during the next twelve months the truck will be used
only in transporting persons, food, provender, feed and machinery
used in operating his farm and the products grown on his farm.

(5) Any person owning a truck or bus used solely in transporting
school children and school employes may have the truck or bus
registered as a school bus and obtain a license for $4.50 by filing with
the county clerk, in addition to other information required, an affi-

Mar. 13 HOUSE OF REPRESENTATIVES 93

davit stating that the truck or bus is used solely in the transportation
of school children and persons employed in the schools of the district,
that he has caused to be printed on each side of the bed of the truck
or bus and on the rear door or part of the bed the words “School Bus”
in letters at least six inches high and of a conspicuous color and that
the truck or bus will be used during the next twelve months only for
the purpose stated.

(6) Any church or religious organization owning a truck or bus
used solely in transporting persons to and from a place of worship or
for other religious work may have the truck or bus registered as a
church bus and obtain a license for $4.50 by filing with the county
clerk, in addition to other information required, an affidavit stating
that the truck or bus will be used only for the transporting of persons
to and from a place of worship, or for other religious work, and that
there has been printed on the truck or bus in large letters the words
“Church Bus,” with the name of the church or religious organization
owning and using the truck or bus, and that during the next twelve
months the truck or bus will be used only for the purpose stated.

(7) Any person owning a truck on which an outfit for drilling
water wells has been mounted and bolted to the chassis may register
the truck and obtain a license for $4.50 by filing with the county clerk,
in addition to other information required, an affidavit that an outfit
for the drilling of water wells has been mounted on and bolted to the
chassis of the truck, and that during the next twelve months the truck
will be used only for the transportation of the well drilling outfit.

(8) Any person owning a motor vehicle on which a wrecking
crane and other equipment suitable for an automobile wrecker service
has been permanently mounted may register the vehicle and obtain
a license for $9.50 by filing with the county clerk, in addition to other
information required, an affidavit that a wrecking crane and other
equipment suitable for an automobile service has been permanently
mounted on such vehicle and that during the next twelve months
the vehicle will be used only in automobile wrecker service.

Section 2. Section 186.055 of the Kentucky Revised Statutes is
hereby amended to read as follows:

(1) All motor vehicles registered under subsection (3) of KRS
186.050, except motor vehicles taxed under KRS 281.810 wherein the
gross weight exceeds 18,000 pounds, shall pay an additional fee as
follows:

Gross Weight Weight Fee
18001-21000) aceon eneene nce $ 67.00
ZLOOL2E 000 5 ccenccece ices tee 84.00
PA DOU O00 acct Sault setae eee 97.00
2100180000: 2 ot cone ation oe eas 113.00
S0,00T 83,000) oo osu cease 130.00

S3001-36;000 2.56 258 ae oe et 148.00

94 JOURNAL OF THE Mar. 13

Gross Weight Weight Fee
96,001-39;000 2c soe eee 170.00
89,001 or over _____------_----------- 200.00

(2) The clerk shall issue a weight plate furnished by the de-
partment and shall be paid for this service the sum of twenty-five
cents.

(3) The clerk shall not register any common or contract carrier
motor vehicle transporting property for hire until the owner has
exhibited to the clerk a receipt from the Department of Motor Trans-
portation showing that the weight tax has been paid as provided for
under KRS 281.810.

(4) Motor vehicles registered under subsection (3) of KRS 186.050
or duly registered under the laws of any other state, which when
operated in this state are used exclusively for the transportation of
property within the limits of the city named in the affidavit herein-
after required to be filed, or within ten miles of the limits of the city
if it is a city of the first, second, third, or fourth class, or within five
miles of its limits if it is a city of the fifth or sixth class, shall not be
required to pay the fee as set out in this section. Nothing in this section
shall be construed to limit any right of nonresidents to exemption from
registration under any other provision of the laws granting reciprocity
to nonresidents. Operations outside of this state shall not be considered
in determining whether or not the foregoing mileage limitations have
been observed. When claiming exemption of payment of the fee, the
owner shall file with the county clerk in addition to any other infor-
mation that may be required an affidavit stating that the motor vehicle
when used within this state is used only for the transportation of
property within the city to be named in the affidavit and the area
above set out and that the vehicle will not be used outside of the city
and the area above set out during the current registration period, and
that there has been printed conspicuously on each side of the vehicle
in letters of distinctive color at least three inches in height the name
of the owner and words “Urban Limits”.

Section 3. Section 281.810 of the Kentucky Revised Statutes is
hereby amended to read as follows:

(1) On or before January 1 of each year and as a condition
precedent to the use of the highways, every motor carrier operating
motor vehicles primarily engaged in the transportation of property for
hire shall pay to the Department of Motor Transportation for the
privilege of using the highways an annual excise tax upon each motor
vehicle so used based on the declared gross weight of the motor ve-
hicle as set out in KRS 186.030, in addition to the basic registration fee
set out in KRS 186.050, as follows:

Mar. 18 HOUSE OF REPRESENTATIVES 95

Gross Weight Fee
02 S000 2243S eo eee tate $ 22.00
DOOR S000 sitet ieee ae Bes te ke 30.00
S001: 1Q000 + 2-5 a ee 48.00
TOQO0 112000 2.2 osteo sleet 52.00
22001-14000: cocsc set pokes 57.00
14001-16006. eos eee tee 62.00
TG001= 18000 Secs es Sea 70.00
18001-21000 0.53 soe ee 101.00
SI00L 24000. c cue ted i cece s oe 132.00
D400 22000 a Serco eet cae kas Se 161.00
P7001 -S0000: joa at ane tece lence 185.00
80001-88000 osetia oceecuee eet aeed 208.00
$8001-86000 « o.-.o 222 ease cus eet eee 235.00
86001-39000. 2..sescducnvesaeada-sass 272.00
89001-or over --.--------------------- 300.00

(2) The tax shall be increased fifty percent on each motor vehicle
not equipped wholly with pneumatic tires.

(3) On or before January 1 of each year and as a condition
precedent to the use of the highways, every motor carrier engaged
in the driveaway business shall pay an annual license fee of two hun-
dred fifty dollars which shall be in lieu of the weight tax set out in
subsection (1) of this section.

Section 4. Section 281.813 of the Kentucky Revised Statutes is
hereby amended to read as follows:
_ On or before January 1 of each year and as a condition precedent
to the use of the highways, every carrier or motor carrier acting as a
U-Drive-It shall pay to the department for the privilege of using the
highways an annual excise tax upon each motor vehicle used in the
transportation of property based upon the declared gross weight of the
motor vehicle as set out in KRS 186.080, in addition to the basic regis-
tration fee as set out in KRS 186.050, and in lieu of the taxes imposed
by KRS 186.055, as follows:

Gross Weight Fee

0= 5000: soe ecueeeccscresecuse ete $ 22.00
5001- 8000 ___---------~~....--....----- 30.00
8001-10000 ___-___-------_--__------ 48.00
10001-12000 ___-----~~....--....--------- 52.00
12001-14000 ___--_------------------- 57.00
14001-16000 __.___------------------- 62.00
16001-18000 __....--....--------------....- 70.00
18001-21000 __-_-----------------.--- 101.00
21001-24000 --.....--~....--------------- 182.00
24001-27000 ___--.------------------- 161.00
27001-30000 ...-.-.-----.--.--------- 185.00

30001-33000 __--_-----~-....---~....----- 208.00

96 JOURNAL OF THE Mar. 13

Gross Weight Fee

83001-86000 __.-----------------~---- 235.00
86001-39000 ___---_-.---------------- 272.00
39001-or over ....--.----------------- 800.00

Section 5. Whereas, legislation is presently pending in the
General Assembly which will increase the permissable maximum gross
weight of motor trucks and tractor semi-trailer combinations from
42,000 pounds to 59,640 pounds, and

Whereas, such legislation will become effective upon its passage
and approval by the Governor, and

Whereas, it is necessary that fees provided for in this Act be
adjusted to conform with the proposed new maximum weights,

Now, Therefore, an emergency is declared to exist and this Act
shall become effective upon its passage and approval by the Governor.

HB 2: AN ACT relating to the registration of trailers, semi-
trailers and house-trailers.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. As used in this Act:

(a) A “trailer” means any vehicle designed for carrying persons
or property and being drawn by a motor vehicle being so constructed
that no part of its weight rests upon the towing vehicle.

(b) “Semi-trailer” means any vehicle designed for carrying per-
sons or property and for being drawn by a motor vehicle and is so
constructed that some part of its weight and some part of its load rests
upon or is carried by another vehicle.

(c) “House-trailer” means any vehicle used, or maintained for
use, as a conveyance upon highways, designed and constructed in
such a manner as will permit occupancy thereof as a temporary dwell-
ing, or as sleeping places for one or more persons, or the conduct of
any business or profession, occupation or trade having no other
foundation than wheels or jacks, and not being used in one location
as a permanent dwelling.

(d) “Department” means the Department of Revenue.

Section 2. (1) Before any owner or operator of a trailer, semi-
trailer or house-trailer, other than trailers or semi-trailers registered
under the provisions of Chapter 281 of the Kentucky Revised Statutes
may operate or permit the operation of such vehicles upon the high-
ways, the owner shall apply for registration to the county clerk of the
county in which he resides or in which such vehicles are principally
operated. The application shall be retained by the clerk and shall be
accompanied by:

Mar. 18 HOUSE OF REPRESENTATIVES 97

(a) A bill of sale, if the application is for the registration of a
new trailer, semi-trailer or house-trailer; or

(b) The owner’s registration receipt, if the trailer, semi-trailer
or house-trailer was last registered in this state; or

(c) A bill of sale and the previous registration receipt, if last
registered in another state where the law of such state does not require
the owner of a trailer, semi-trailer or house-trailer to obtain a certifi-
cate of title or ownership; or

(d) A certificate of title, if last registered in another state where
the law of such state requires the owner of a trailer, semi-trailer or
house-trailer to obtain a certificate of title or ownership; or

(e) Affidavit from the owner of a trailer, semi-trailer or house-
trailer assembled or constructed for his personal use on the high-
ways; Or

(f) Affidavit from the owner of a trailer, semi-trailer or house-
trailer where the bill of sale for such vehicle has been lost, destroyed
or stolen.

The affidavit required in paragraph (e) shall contain the owner's
name, address, date, brief description and a statement that the trailer
was constructed by the owner for use on the highways and any addi-
tional information that the Department may from time to time pre-
scribe by regulation.

The affidavit required in paragraph (f) shall contain the owner's
name, address, date, make, year made, serial or identification number,
from whom purchased, date of purchase, that the person making the
affidavit is the sole owner, the circumstances under which the bill of
sale was lost, destroyed or stolen, and any additional information that
the Department may from time to time prescribe by regulation.

After that, he shall register his trailer, semi-trailer or house-trailer
on or before March 1 of each year. Insofar as the owner is concerned,
registration with the clerk shall be deemed to be registration with the
Department.

Section 3. A trailer, semi-trailer or house-trailer last registered
in another state and purchased by a person for operation in this state
shall be first registered in this state by and in the name of the pur-
chaser and not in the name of the seller.

Section 4. If an owner because of sickness or absence from the
state is unable to renew the registration of his trailer, semi-trailer or
house-trailer on or before March 1, he will be deemed to have com-
plied with the law, if before operating the trailer, semi-trailer or house-
trailer in this state he registers it at some later date and pays the fee
for the full year, just as though he had renewed the registration on
or before March 1. The owner shall file with the application an affi-
davit showing sickness or absence.

Section 5. The application blank shall contain blank spaces for,
and the applicant shall fill in the owner’s name and post office address,

98 JOURNAL OF THE. Mar. 18

make of the trailer, semi-trailer or house-trailer, and serial or identifica-
tion number. Every application shall be accompanied by the ap-
propriate fee.

- Section 6. Upon filing application and paying the fee as pro-
vided by law, said owner shall be given a receipt containing the
registration number and the information included in the application
and one plate for the registration year bearing said number. —

Section 7. The annual registration fee for trailers and semi-
trailers which are drawn by motor vehicles required to be licensed
under section 186.050 of the Kentucky Revised Statutes shall be $4.50.

The registration fee for house-trailers shall be $9.50.

The clerk shall issue the registration plate furnished by the De-
partment and shall be paid for this service the sum of fifty cents.

Section 8. If any person becomes the owner of a trailer, semi-
trailer or house-trailer after January 1 of any year, and for that reason
registers for only part of a year the registration fee shall be as many
twelfths of the annual fee as there are unexpired months in the calendar
year.

Section 9. The Department shall prescribe a plate of practical
form and size which shall contain only the registration number and
the word “Trailer” and the abbreviation of the word “Kentucky”.

Section 10. Sections 186.070 through 186.240 of the Kentucky
Revised Statutes shall apply to the registration of trailers, semi-trailers
and house-trailers in so far as practicable.

Section 11. Trailers, semi-trailers and house-trailers as defined
in this Act are expressly exempted from Sections 138.450 through
138.470 of the Kentucky Revised Statutes.

Section 12. The Department of Revenue shall administer the
provisions of this Act.

Section 18. This Act shall become effective January 1, 1957.

HB 3: AN ACT relating to motor transportation and motor ve-
hicles.

__ Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Section 281.630 of the Kentucky Revised Statutes is
hereby amended to read as follows:

(1) A certificate shall be issued to any qualified applicant there-
for, authorizing the whole or any part of the operation covered by the
application, if it is found that the applicant is fit, willing and able
properly to perform the service proposed and to conform to the pro-
visions of this chapter and the requirements and the rules and regula-

Mar. 18 HOUSE OF REPRESENTATIVES 99

tions of the department thereunder, and further that the existing trans-
portation service is inadequate, and that the proposed service, to the
extent to be authorized by the certificate, is or will be required by the
present or future public convenience and necessity, and that the pro-
posed operation, to the extent authorized by the certificate, will be
consistent with the public interest and the transportation policy de-
clared in this chapter; otherwise such application shall be denied,
provided, however, that nothing herein shall be construed so as to
require the department to give, to any existing carrier authorized to
render service to, from or between any point on the route proposed to
be served by the applicant, any notice regarding the quality or quantity
of its service to, from or between such points or to require the depart-
ment to give to such existing carrier any opportunity to improve its
existing service or to render the service found to be needed before
the issuance of a certificate to the applicant.

(2) In granting a certificate, the order, among other things, shall
specify the route or routes of service and territory to be served, pro-
vided that where the certificate to be granted specifies a route or
routes or portion of a route or routes common to a certificate or
certificates authorizing the same type of operation held by the appli-
cant, all such certificates shall constitute but a single operating au-
thority over that portion of the route or routes common to the cer-
tificates. The order granting a certificate shall not limit the number
of vehicles to be operated by the motor carrier except that, in the
granting of a certificate for the operation of taxicabs, the order shall
specify the maximum number of taxicabs to be operated thereunder.

(3) A carrier shall be entitled to have issued to it by the depart-
ment as many certificates, and of such types, as will cover its entire
authorized operation.

(4) A permit shall be granted to any qualified applicant therefor
authorizing in whole or in part the operations covered by the applica-
tion, if it appears from the application and the hearing held thereon
that the applicant is fit, willing and able properly to perform the
service of a contract carrier by motor vehicle and to conform to the
provisions of this chapter and the lawful requirements, rules and
regulations of the department thereunder, and that the proposed
operation to the extent authorized by the permit will be consistent with
the public interest and the transportation policy declared in this
chapter, and that it will not unreasonably impair the efficient public
service of any authorized common carrier then adequately serving the
same territory, and if it further appears that the existing transporta-
tion service is inadequate, and that it appears that the proposed service
is needed; otherwise such application shall be denied. The department
shall specify in the permit the business of the contract carrier covered
thereby and the scope therof, and shall attach to it at the time of
issuance, and from time to time thereafter, such reasonable terms,
conditions and limitations consistent with the character of the holder

100 JOURNAL OF THE Mar. 13

as a contract carrier as are necessary to carry out, with respect to the
operations of such carrier, the requirements established by the depart-
ment.

(5) Amendment or change of route or abandonment of a cer-
tificate or permit shall be granted upon the same basis that an original
certificate or permit is granted.

(6) Any certificate or permit may be sold, assigned, leased: or
transferred, after a hearing and notice to interested parties as pro-
vided for in KRS 281.625, provided the transferee is fit, willing and
able to render the proposed service, unless it would be against the
public interest, and provided further that the commissioner may
approve the sale and transfer of a certificate for the operation of taxi-
cabs without a hearing if, after due notice of the proposed sale or
transfer is given to all interested parties in accordance with the rules
and regulations of the department, no protest is filed to the proposed
sale or transfer and the commissioner believes that it will be in the
public interest.

(7) For the purpose of this section, a transfer of the controlling
stock of a corporation owning a certificate or permit may be considered
a transfer of said certificate or permit.

(8) Upon the consummation of a merger or consolidation of
motor carriers as effected under the provisions of KRS Chapter 271,
the surviving or new corporation, as the case may be, shall own and
possess all of the certificates, permits, authorizations, licenses, rights,
privileges, franchises and properties owned or possessed by each of
such motor carriers; and if such merger or consolidation is set aside,
the certificates, permits, authorizations, licenses, rights, privileges,
franchises and properties acquired by the surviving or new corporation
through the merger or consolidation shall become revested in the corpo-
ration from which acquired, unless disposed of, subject to such in-
debtedness and liens as may be equitable, and all other properties of
the surviving or new corporation shall become vested in the constituent
corporation in such manner as may be fair and equitable.

(9) (a) Notwithstanding the provisions of subsection (8) of this
section, where a motor carrier has been granted two or more certifi-
cates or permits authorizing the same type of operation over a route
or routes or a portion of a route or routes common to two or more of
the certificates or permits, the carrier shall be deemed to possess only
one operating authority over that portion of the route or routes com-
mon to the certificates or permits.

(b) The department is authorized to recall any of the certificates
or permits described in paragraph (a) and to reissue one or more
certificates covering the exact authority.

Section 2. Section 281.631 of the Kentucky Revised Statutes is
hereby amended to read as follows:

(1) Every holder of a certificate of public convenience and
necessity issued by the Department of Motor Transportation authoriz-

Mar. 18 HOUSE OF REPRESENTATIVES 101

ing the transportation of persons or property for hire, which certificate
authorizes service at a point that is also a point at which service is
authorized under the terms of any other certificate of the same type
held by the same person, is authorized to transport persons or
property, as the case may be, for hire, from any point on either of said
certificated routes via such common point of service to any point on
any other such connecting certificated route or routes, unless such
service be restricted by the terms of any of said certificates.

(2) It is the purpose of this section to further clarify the pro-
visions of KRS Chapter 281 relating to the application of the ad-
ministrative and judicial interpretations of the Federal Motor Carrier
Act to the administration of KRS Chapter 281.

Section 3. Section 281.640 of the Kentucky Revised Statutes is
hereby amended to read as follows:

Hearings before the department may be held at the most con-
venient place for the parties and witnesses. The hearing shall be con-
ducted by an examiner appointed by the commissioner who shall be
a practicing attorney in this state and who shall be a full-time em-
ployee of the department. After the final conclusion of the hearing
the examiner shall make a report and recommended order, which report
and recommended order shall contain a finding of fact and a con-
clusion of law, and such report and recommended order shall be
served by certified mail upon each of the parties. Any of the parties
thereto may, within twenty days after the date of the report and
recommended order, file and serve exceptions thereto and reasons in
support thereof. Replies may be served and filed within twenty days
after the date of the filing of exceptions. Thereafter the commissioner
or one of the assistant commissioners shall consider and pass upon
the case. When passed upon by the commissioner or when passed
upon by an assistant commissioner and approved by the commissioner,
the decision shall be served by certified mail upon all parties and shall
be a final order of the department. The report and recommended order
will not become the decision of the department through failure to file
exceptions, but in the absence of exceptions ordinarily will be taken
by the department as the basis of its decision. However, nothing herein
contained shall prevent the commissioner from holding or conducting
any hearing, referred to herein, in regard to rates, fares and charges,
and his decision shall be the final order of the department.

Section 4. Section 281.650 of the Kentucky Revised Statutes is
hereby amended to read as follows:

(1) Every certificate or permit shall be renewed before January
1 of each year. Application for renewal shall be in such form as the
department may require.

(2) No motor vehicle shall be operated after January 1 of each
year unless the requisite fee as hereinafter provided for is paid.

102 JOURNAL OF THE Mar. 18

(8) A certificate or permit not renewed within one calendar year
after renewal date shall automatically become null and void and
cannot be reinstated. Nothing herein contained shall prohibit the
filing of a new application.

(4) The department shall not renew any certificate or permit if
such certificate or permit has been revoked, or if suspended, during
the period of suspension. A certificate or permit shall not be considered
as revoked or suspended when an appeal is pending in the Franklin
Circuit. Court or in the Court of Appeals from an order of revocation
or suspension until said appeal has been decided by the courts.

(5) For the renewal of any certificate or permit the department
shall receive a fee of twenty-five dollars.

Section 5. Section 281.655 of the Kentucky Revised Statutes is
hereby amended to read as follows:

(1) Before any certificate or permit will be issued or renewed,
the applicant or holder of the certificate or permit must file or have
on file with the department an approved indemnifying bond or in-
surance policy issued by some surety company or insurance carrier
authorized to transact business within the Commonwealth of Ken-
tucky. The bond or policy shall be issued for such a period of time
that its expiration date will be January 1 of the following year; and
shall have attached thereto the state insurance endorsement. All bonds
or policies required herein must be issued in the name of the holder
of the certificate or permit; provided, however, and except as other-
wise provided herein, such bond or insurance policy in the case of a
U-Drive-It shall meet the requirements provided for in KRS 187.490.
In lieu of the bond or policy, there may be filed with the department
an approved certificate of insurance; provided, however, that the
expiration date of January 1, above referred to, shall not apply to
policies the term of which is continuous and which are to remain in
full force until cancelled under proper notice.

(2) All bonds or policies shall specifically state what equipment
is covered by the policy. In the event a certificate is filed it shall have
endorsed thereon a specific description of all equipment covered by
the policy. It is further required that any and all changes in the
equipment covered by the policy, or bond. or the certificate of in-
surance shall be certified to the department at once. The department
may authorize acceptance of a policy that is an overall coverage
blanket policy, which does not specifically describe the equipment
covered thereby.

(3) Effective January 1, 1957, the types and minimum amounts
of insurance to be carried on each vehicle are as follows:

Mar. 13 HOUSE OF REPRESENTATIVES 103.

MOTOR VEHICLES FOR THE TRANSPORTATION
OF PERSONS, INCLUDING U-DRIVE-ITS

Total
Death or Liability
Injury for Death
to Any One or Injury Property

Capacity Person to Persons Damage
7 persons or less $10,000.00 $20,000.00 $5,000.00
8 to 16 inclusive 10,000.00 30,000.00 5,000.00

17 to 25 inclusive 10,000.00 40,000.00 5,000.00

26 or more 10,000.00 50,000.00 5,000.00

MOTOR VEHICLES FOR THE TRANSPORTATION OF
PROPERTY, INCLUDING U-DRIVE-ITS

Total
Death or _Liability for
Injury Death of
to Any One _ or Injury Property

Gross Weight Person to Persons Damage
18,000 Ibs. or less $10,000.00 $20,000.00 $5,000.00
More than 18,000 Ibs. 10,000.00 80,000.00 5,000.00

(4) Any carrier or motor carrier using any vehicle for the trans-
portation of inflammables, explosives or petroleum or petroleum prod-
ucts in bulk shall have the following types and minimum amounts of
insurance carried on each such vehicle:

Death of Total Liability

or Injury for Death of or Property
to Any One Person Injury to Persons Damage

$10,000.00 $30,000.00 $25,000.00

(5) Before any certificate exclusively authorizing the transporta-
tion of property will be issued or renewed, the applicant or holder
of the certificate must file or have on file with the department an
approved insurance policy or bond, or approved certificate of such
insurance or bond, compensating shippers or consignees for loss or
damage to property belonging to shippers or consignees and coming
into possession of the carrier in connection with its transportation
service, (a) for loss of or damage to property carried on any one motor
vehicle in the amount of one thousand dollars; (b) for loss of or damage
to or aggregate of losses or damages of or to property occurring at any
one time and place in the amount of two thousand dollars. Said policy,
or bond, or certificate shall have attached thereto the Kentucky cargo
policy endorsement and must be issued by some insurance or surety
company authorized to transact business within the Commonwealth of
Kentucky. Such policy, hond or certificate shall be issued for such a

104 JOURNAL OF THE Mar. 18

period of time that its expiration date will be January 1 of the fol-
lowing year, except that such expiration date shall not apply to
policies the term of which are continuous and which are to remain
in full force until cancelled under proper notice.

(6) No insurance company or insurance carrier issuing any policy
filed with the department, and no surety or obligor on any bond or
contract filed with the department, shall be relieved from liability
under the policy, bond or contract until after the expiration of 15
days’ notice to the department of an intention to cancel the policy,
bond or contract, provided, however, that a prior cancellation may be
allowed in cases where one policy, bond or contract is substituted for
another policy, bond or contract where such substituted policy, bond
or contract is of force and effect at a point in time prior to the expira-
tion of 15 days’ notice to the department of an intention to cancel the
policy, bond or contract for which such additional policy, bond or
contract is being substituted. The acceptance of any notice of an in-
tention to cancel any policy, bond or contract or the cancellation of
any policy, bond or contract by the department, unless under the
circumstances hereinbefore set forth, shall not relieve the insurance
company, insurance carrier, surety or obligor of any liability that
accrued prior to the effective date of the cancellation.

(7) Upon the cancellation of any bond or insurance poy re-
quired by this section, all operating rights granted by the certificate
or permit for which said bond or policy was filed, shall immediately
cease, and the department is empowered to immediately require the
cessation of all operations conducted under authority of said certificate
or permit, and to require the surrender of all certificates, permits,
licenses and other evidence of a right to act as a motor carrier.

(8) The department may exempt in whole or in part from the
requirements of this section any person who applies for such exemption
and shows to the satisfaction of the department that, by reason of the
financial se of the person applying, there is due assurance of the
payment of all damages for which he may become liable as a result
of the operation of any vehicle owned bs him or operated under
authority of his certificate or permit.

Section 6. Section 281.770 of the Kentucky Revised Statutes is
hereby amended to read as follows:

In addition to all other enforcement agencies, the Department of
Motor Transportation and the Department of Revenue are hereby
authorized to issue commissions to their employees as law enforcement
officers, and such employees when so commissioned shall have all
the powers of peace officers in respect to the enforcement of this
chapter and all the statutes relating to motor vehicles, whether such
vehicles be operated as a private carrier or for-hire carrier.

Section 7. A new section of Chapter 281 of the Kentucky Re-
vised Statutes is hereby created to read as follows:

Mar. 18 HOUSE OF REPRESENTATIVES 105

The department may, by regulation, charge a fee of $5.00 each
for the issuance of such identifying plates, decals, signs or papers as
may be necessary for the identification of trailers or semi-trailers which
are operated by carriers or motor carriers under the jurisdiction of the
department; provided, however, that the provisions of this section shall
not be applicable with respect to:

(1) Trailers or semi-trailers operated in interstate commerce in
this state by carriers or motor carriers domiciled in a state other than
this state when used in combination with power units licensed in a
state other than this state, said power units being lawfully entitled to
reciprocal privileges in this state under the circumstances being
operated; or

(2) Trailers or semi-trailers operated in interstate commerce in
this state by carriers or motor carriers domiciled in a state other than
this state when used in combination with power units licensed in a
state other than this state, said power units not being lawfully entitled
to reciprocal privileges in this state under the circumstances being
operated if said power units are at the time properly licensed in this
state or are operated under a lawful exemption from the requirements
of licensing in this state; or

(3) Trailers or semi-trailers operated in interstate commerce in
this state on a lawful interchange basis by carriers or motor carriers
domiciled in this state.

Section 8. A new section of Chapter 281 of the Kentucky Re-
vised Statutes is hereby created to read as follows:

The department shall have the right to withdraw, set aside or
amend any Final Order it has issued, provided, however, that such
action upon the part of the department be taken between the date of
the rendition of the Final Order and the expiration of the time for
appeal or until an appeal has been taken.

Section 9. A new section of Chapter 281 of the Kentucky Re-
vised Statutes is hereby created to read as follows:

Certificates or permits authorizing the transportation of petroleum
and petroleum products in bulk in tank trucks shall be so construed
as to authorize the holder thereof to transport acid, coal tar, coal tar
products, chemicals, chemical compounds, vegetable oils, and paints
in bulk in tank trucks, provided, however, that nothing herein shall
be construed to: obviate or remove any specific restriction or limitation
as to areas which may be served that presently exist in any such
certificate or permit, and such limitation or restriction shall remain in
effect.

Section 10. A new section of Chapter 281 of the Kentucky Re-
vised Statutes is hereby created to read as follows:

(1) To enable the provision of service for which there is an
immediate and urgent need to or from a point or points or within a
territory having no carrier service capable of meeting such need, the

106 JOURNAL OF THE Mar. 18

department, may, in its discretion and without hearings or other pro-
ceedings, grant temporary authority for such service by a common
carrier or a contract carrier by motor vehicle, as the case may be.
Such temporary authority, unless suspended or revoked for good cause,
shall be valid for such time as the department shall specify but for
not more than an aggregate of 180 days, and shall create no pre-
sumption that corresponding permanent authority will be granted
thereafter.

(2) Pending the determination of an application filed with the
department for approval of a consolidation or merger of the properties
of two or more motor carriers, or of a purchase, lease, or contract
to operate the properties of one or more motor carriers, the department
may, in its discretion, and without hearings or other proceedings, grant
temporary approval, for a period not exceeding 180 days, of the
operation of the motor carrier properties sought to be acquired by the
persons proposing in such pending application to acquire such prop-
erties, if it shall appear that failure to grant such temporary approval
may result in destruction of or injury to such motor carrier properties
sought to be acquired, or to interfere substantially with their future
usefulness in the performance of adequate and continuous service to
the public.

Section 11. A new section of Chapter 281 of the Kentucky Re-
vised Statutes is hereby created to read as follows:

The taxes imposed by KRS 281.813 shall be subject to the same
proration under the same circumstances as are allowed by KRS 281.825
(2) and the provisions of KRS 281.825 (3) shall be applicable to any
license issued for a vehicle subject to KRS 281.818.

Section 12. A new section of Chapter 281 of the Kentucky Re-
vised Statutes is hereby created to read as follows: ;

Nothing contained in this chapter shall be so construed as to
prohibit the department from granting a certificate authorizing the
operation of taxicabs from an unincorporated community.

Section 18. Section 281.805 of the Kentucky Revised Statutes is
hereby amended to read as follows:

No person shall operate a taxicab in competition with a common
carrier outside of the corporate limits of a city or outside the limits of
an unincorporated community, as the case may be, except another
taxicab, over the route or any part of the route covered by the certifi-
cate of the common carrier, except for casual trips, and on such casual
trips the operator of the taxicab shall not pick up any passenger along
the route and shall not on the return trip carry any passenger other
than those carried on the original trip.

Section 14. A new section of Chapter 281 of the Kentucky Re-
vised Statutes is hereby created to read as follows:
In the event a hearing be held by the department upon an appli-

Mar. 18 HOUSE OF REPRESENTATIVES 107

cation for a U-Drive-It permit as defined by KRS 281.010, the ques-
tion for determination shall be the fitness, willingness and ability of the
applicant, and whether the operation proposed is bona fide.

Section 15. A new section of Chapter 281 of the Kentucky Re-
vised Statutes is hereby created to read as follows:

The department may, by regulation, prescribe and charge a fee,
not to exceed 50c in each instance, for the issuance of such identifying
plates, decals, cards, signs or papers, for the identification of motor
vehicles operated by carriers or motor carriers under the jurisdiction
of the department, which vehicles have been qualified for, and have
been granted, reciprocal privileges in Kentucky in regard to motor
vehicle registration fees and highway use taxes.

Section 16. The introductory clause and subsection (26) of
Section 281.010 of the Kentucky Revised Statutes are amended to read
as follows:

As used in this chapter, unless the context requires otherwise:

® 9 e

(26) The term “Driveaway” means the transporting and deliver-
ing of motor vehicles, except semi-trailers, and trailers, whether des-
tined to be used in either a private or for-hire capacity, under their
own power or by means of a full mount method, saddle mount method,
the tow bar method or any combination of them over the highways
of this state from any point of origin to any point of destination
for-hire. The transportation of such vehicles by the full mount method
on trailers or semi-trailers shall not be included in the term.

sl & ®

Section 17. A new section of Chapter 281 of the Kentucky
Revised Statutes is hereby created to read as follows:

In addition to the annual license fee imposed by KRS 281.810
(3) each motor carrier operating as a Driveaway shall procure from
the department a license tag to be prominently displayed on each
unit transported by this method. For such license tag, the carrier
shall pay to the department a fee of $5.00 each. The said tag may be
transferred from one transported unit to another for re-use.

Section 18. A new section of Chapter 281 of the Kentucky
Revised Statutes is hereby created to read as follows:

The Department of Motor Transportation is authorized and di-
rected to negotiate with other states pursuant to the provisions of
KRS 281.835 for the purpose of developing a reciprocal method of
proportionate registration of fleets of motor vehicles engaged in inter-
state commerce and operating into or through the Commonwealth of
Kentucky and to make such recommendations to the 1958 General As-
sembly respecting such formula or method or proportionate registration
of fleets of motor vehicles as will compensate fairly the Common-
wealth of Kentucky for the use of its highways by such vehicles and
preserve reciprocity with other states in the United States. The Depart-

108 JOURNAL OF THE Mar. 18

ment of Motor Transportation shall make such other recommendations
as the General Assembly may request or direct or as the Department
may deem desirable in performing the duties required of it by KRS
281.590.

Section 19. Section 187.640 of the Kentucky Revised Statutes
is hereby repealed.

HB 4: AN ACT relating to the excise tax on gasoline.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Section 138.240 of the Kentucky Revised Statutes
is amended to read as follows:

(1) Every dealer or the treasurer or other proper officer or
agent of every dealer shall, by the last day of each month, transmit
to the Department of Revenue a report under oath or affirmation, on
such forms as the department may prescribe, of the total number of
gallons of gasoline received in this state during the next preceding cal-
endar month. This report shall include the following information:

(a) An itemized statement of the number of gallons of gasoline
received that have been produced, refined, manufactured or com-
‘seer tae by the dealer in this state during the next preceding calendar
month.

(b) An itemized statement of the number of gallons of gasoline
received by the dealer in this state from any source during the next
preceding calendar month as shown by shippers’ invoices, other than
the gasoline falling within the provisions of paragraph (a) of this sub-
section, together with a statement showing the date of receipt of such
gasoline, the name of the person from whom purchased, the date of
receipt of each shipment, the point of origin and the point of destina-
tion, the quantity of each purchase or shipment, the name of the
carrier, the initials and number of each tank car, the date of receipt
and the number of gallons contained in each car if shipped by rail or
the name and owner of the boat, ship, truck, transport, barge or vessel
if shipped by water.

(2) The report required by subsection (1) of this section shall
also contain an itemized statement of the number of gallons of received
gasoline that the dealer has, during the preceding calendar month:

(a) Sold to the United States Government in single deliveries
of not less than two thousand gallons each.

(b) Sold for delivery in this state in transport truck, tank car
or cargo lots to licensed bonded dealers. The statement shall give a
record of all such transport truck, tank car, or cargo sales of gasoline,
giving the date of shipment, the number of gallons contained in each
shipment, the name of owner and license number of truck if shipped
by transport truck, the initials and number of the tank car if shipped
by rail, the name and owner of the boat, barge or vessel and the num-

Mar. 13 HOUSE OF REPRESENTATIVES 109

ber of gallons contained therein if shipped by water, and the name of
the person to whom sold, point of shipment and point of delivery.
(c) Lost through accountable losses.
(d) Exported or sold for export from this state to any other
state.

Section 2. Section 138.250 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Any person who produces, refines, manufacturers or com-
pounds gasoline in this state shall, by the last day of each month file
a report with the Department of Revenue, on forms prescribed by it,
covering the next preceding calendar month, showing the number of
gallons of gasoline at sixty degrees Fahrenheit produced, defined,
manufactured or compounded, the number of gallons at sixty degrees
Fahrenheit withdrawn from storage and received and the number of
gallons withdrawn at sixty degrees Fahrenheit from refinery storage
and shipped to points outside of this state, and the number of gallons
at sixty degrees Fahrenheit withdrawn from refinery storage and
shipped to points within this state upon which the tax has not been
paid. This report shall give in detail such information as the depart-
ment may require, regarding each separate shipment, the date of
shipment, the number of gallons at sixty degrees Fahrenheit in each
shipment, the name of owner and license number of truck if shipped
by transport truck, the initial and number of tank car if shipped by
rail, the name and owner of barge if shipped by water, the name and
address of person to whom shipped, the point of shipment, the point of
destination and the name of carrier to whom delivered for transporta-
tion to destination.

(2) Any person who imports and stores gasoline in any marine
or pipeline terminal storage in this state shall, by the last day of the
month, file a report with the Department of Revenue, on forms pre-
scribed by it, covering the next preceding calendar month, showing
the number of gallons of gasoline at sixty degrees Fahrenheit un-
exported and stored, the number of gallons at sixty degrees Fahrenheit
withdrawn from storage and received, the number of gallons at sixty
degrees Fahrenheit withdrawn from storage and shipped to points
outside of this state, and the number of gallons of gasoline at sixty
degrees Fahrenheit withdrawn from storage and shipped to points
within this state, upon which the tax has not been paid. This report
shall give in detail such information as the department may require,
regarding each separate shipment, the date of shipment, the number
of gallons at sixty degrees Fahrenheit in each shipment, the name
of owner and license number of truck if shipped by transport truck, the
initial and number of tank car if shipped by rail, the name and owner
of barge if shipped by water, the name and address of person to
whom shipped, the point of shipment and point of destination, and
the name of carrier to whom delivered for transportation to destination.

110 JOURNAL OF THE Mar. 13

(8) There shall be allowed a monthly deduction for evaporation,
shrinkage or unaccountable losses while in storage, of that number of
gallons equal to the actual loss of gasoline so sustained out of the
total number of gallons of gasoline stored in any marine terminal,
refinery or pipeline terminal, except that such deduction may not in
any event exceed three-fourths of one percent of the total number of
gallons of gasoline stored in any marine terminal, refinery or pipeline
terminal. The remaining asaline placed in storage must be fully
accounted for as in physical inventory, accountable loss, withdrawn
for export or withdrawn from storage and received for taxable pur-
poses.

(4) The number of gallons of gasoline added to marine, pipe-
line or refinery storage shall be determined by the department by
actual measurement of terminal storage tanks in the manner it deems
necessary.

Section 3. Whereas, it is to the best interest of the people of
the Commonwealth of Kentucky that the provisions of this Act take
effect at the earliest possible date, an emergency is declared to exist
and this Act shall take effect immediately upon its passage and
approval by the Governor.

HR 3: A JOINT RESOLUTION making an appropriation to the
Legislative Session Fund and declaring an emergency.

WHEREAS, the funds appropriated to the Legislative Session
Fund for the present biennium are almost exhausted, and

WHEREAS, sufficient funds are not available to pay members
and employees of the General Assembly for the duration of the extra-
ordinary sessions of the General Assembly,

NOW, THEREFORE,

- Be it resolved by the General Assembly of the Commonwealth
of Kentucky:
Section 1. That there is appropriated to the Legislative Session

Fund out of the General Expenditure Fund in the State Treasury the
sum of three hundred thousand dollars for the 1955-56 fiscal year.

Section 2. Whereas, funds previously appropriated to the Gen-
eral Assembly are insufficient to meet the expenses of the peclnarod!
sessions, an emergency is declared to exist, and this Resolution shall
become effective upon its passage and approval by the Governor.

Introduction of Bills
HB 7, by Representatives eae | and Harris: AN ACT relating
to motor vehicles and the operator’s thereof.
Representative Morgan moved to adjourn until 1:00 P.M., March
14th. Agreed. =

Mar. 14 HOUSE OF REPRESENTATIVES lil

WEDNESDAY, MARCH 14, 1956
FIFTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend John C. Chenault of the First Christian
Church, Frankfort.

The roll was called. All present except Billington, Blue, Cottengim,
Davidson, Farmer, Hadden, Highland, Durham Howard, Isler, Lam-
bert, Nunnelley, Pollitte, Qualls, Ratcliffe, Rayburn, Weintraub, Wil-
liamson, and Young, who were granted leaves of absence on motion
of Representative Morgan.

Reading of the Journal for March 13, 1956, dispensed with and
the same approved on motion of Representative Thompson.

Calendar

HB 1, HB 2, HB 3, HB 4, and HR 8 were taken from the Calendar
and read at length for the second time. Ordered placed in the Orders
of the Day.

Introduction of Bills

HB 8, by Representative Morgan: AN ACT relating to revenue and

taxation.
Recess

Representative Morgan moved that the House do now recess for
15 minutes for a Rules Committee Meeting. Agreed. At the appointed
hour, the Speaker resumed the Chair and called the House to order.

Report of Committee
Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.
Committee on Rules reported HB 8 and HR 5 with the expression
of opinion that the same should pass. Read at length for the first time
and ordered placed in the Calendar.

HB 8: AN ACT relating to revenue and taxation.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

_ Section 1. Section 138.560 of the Kentucky Revised Statutes is
amended to read as follows:

As used in KRS 138.560 to 138.640 and in subsections (19) (20)
and (21) of 188.990, unless the context requires otherwise:

(1) “Department” means the Department of Revenue.

(2) “Person” includes every natural person, fiduciary, association,
state or political subdivision, or corporation. Whenever used in any
clause prescribing and imposing imprisonment the term “person” as
applied to an association means and includes the partners or members
thereof, and as applied to corporations, the officers thereof.

(3) “Special fuel” means and includes all combustible gases and

112 JOURNAL OF THE Mar. 14

liquids used for the generation of power in an internal combustion
engine to propel vehicles of any kind upon the public highways, except
that it does not include gasoline as defined in KRS 138.210.

(4) “Motor vehicle” means any vehicle, machine or mechanical
contrivance propelled by an internal combustion engine and licensed
for operation and operated upon the public highways and any trailer
or semi-trailer attached to or having its front end supported by such
motor vehicle.

(5) “Public highway” means every way or place generally open
to the use of the public as a matter of right for the purpose of ve-
hicular travel, notwithstanding that it may be temporarily closed or
travel thereon restricted for the purpose of construction, maintenance,
repair or reconstruction.

(6) “Use” means the delivery or placing of special fuel into the
fuel supply tank or tanks of a motor vehicle within this state. With
respect to an interstate user as hereinafter defined the term “use”
means the consumption of special fuel in propelling motor vehicles on
the public highways of this state as computed under KRS 188.595.

(7) “Special fuel dealer” means any person who receives special
fuel as defined in this section into storage tanks from which with-
drawals are made and placed into fuel supply tanks of a motor vehicle
for use on the public highways of this state.

(8) “Dealer” means special fuel dealer as defined above.

(9) “Special fuel user” means any person, other than a special
fuel dealer or interstate special fuel user who uses special fuels within
the meaning of the word “use” as defined in this section.

(10) “User” means special fuel use as defined above.

(11) “Interstate special fuel user” means common and contract
carriers of persons or property by motor vehicles operated upon the
public highways of both this state and other states and any other
motor vehicular carriers of property operated upon the public high-
ways of other states and upon the highways of this state.

(12) “Interstate user” means interstate special fuel user as de-
fined above.

(13) “Heavy equipment special fuel user” means any person who
operates on the public highways of this state, a motor vehicle, including
a trailer or semi-trailer, having more than three axles none of which
are closer together than 42 inches.

(14) A “licensee” for purposes of this Act is any person who has
been granted a license as a special fuel dealer, special fuel user, in-
terstate special fuel user or heavy equipment special fuel user.

(15) “Quarterly” for purposes of this Act means a three-month
period ending June 30 in the year 1956 and each succeeding three-
month period thereafter.

Section 2. Section 188.565 of the Kentucky Revised Statutes is
amended to read as follows:

Mar, 14 HOUSE OF REPRESENTATIVES 118

(1) An excise tax of seven cents per gallon shall be paid on the
use (as defined in KRS 138.560 (6) of special fuel.

(2) In addition to the tax imposed by subsection (1), a heavy
equipment special fuel user shall pay a surtax of two cents per gallon
on the use of special fuel on the public highways of this state.

(8) The taxes imposed by subsections (1) and (2) shall be re-
ported, computed and paid as provided by KRS 138.590 and 138.595.

(4) Two-sevenths of all amounts received by reason of the tax
paid under subsection (1) of this section shall be set aside by the
Department of Highways for the construction, reconstruction and
maintenance of rural and secondary roads and for no other purpose.

Section 8. Section 188.570 of the Kentucky Revised Statutes is
amended to read as follows:

(1) A license shall be required of each special fuel dealer,
special fuel user, interstate special fuel user, and heavy equipment
special fuel user.

(2) Application for a license shall be made to the department
upon forms prepared and furnished by the department. The applica-
tion shall contain such information as the department deems neces-
sary.

(8) Concurrently with the filing of an application for a license,
the special fuel dealer, special fuel user, interstate special fuel user
or heavy equipment special fuel user shall file with the department
a bond as required under KRS 188.575. No license shall be issued to
any person unless such person has furnished a bond as provided in
KRS 188.575 to secure payment of taxes, penalties, and interest im-
posed by this Act.

(4) The application in proper form having been accepted for
filing, the bond having been accepted and approved and the other
conditions and requirements of this section having been complied
with, the department shall issue a license. However, if an application
for a license is filed by any person whose license has at any time
previously been revoked for cause by the department, or if the de-
partment is of the opinion that the person who makes the application
as a subterfuge for the real party in interest whose license, prior to
the time of filing the application, has been revoked for cause, or
that the application is not for any other reason filed in good faith
or is not for sufficient cause, the department may, after a hearing
of which the applicant shall be given ten days’ notice in writing and in
which he shall have the right to appear in person or by counsel and
present testimony, refuse to issue a license to that person.

(5) All licenses shall be valid and remain in full force and effect
until suspended or revoked for cause or otherwise cancelled.

(6) A license shall not be assignable or transferable and shall be
valid only for the person in whose name it is issued.

(7) The department shall keep and file all applications and bonds,
with an alphabetical index thereof.

114 JOURNAL OF THE Mar. 14

Section 4. Section 138.575 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Every special fuel dealer, special fuel user, interstate special
fuel user, aad heavy equipment special fuel user shall file with the
department a corporate bond, cash bond or securities approved by
the department in a minimum amount of five hundred dollars and in a
maximum amount of four months’ liability for taxes imposed under
this Act but not to exceed fifty thousand dollars. The applicant for a
license shall be the principal obligor and this state shall be the obligee.
The bond shall be conditioned upon the prompt filing of true reports
and the payment by the licensee to the department of all taxes levied
under this Act, together with all penalties and interest thereon, and
generally upon faithful compliance with the provisions of KRS 138.560
to 188.640.

(2) If the liability upon the bond is discharged or reduced,
whether by judgment rendered, payment made, or otherwise, or if in
the opinion of the department any surety has become unsatisfactory
or unacceptable, the department may require the licensee to file a
new bond with satisfactory pees in the same form and amount,
failing which the department shall forthwith cancel the license. If a
new bond is furnished by the licensee as above provided, the de-
partment shall cancel the bond for which the new bond is substituted.

(3) If upon hearing, of which the licensee shall be given ten
days’ notice in writing, the department decides that the amount of the
existing bond is insufficient to insure payment to this state of the
amount of the tax, penalties and interest for which the licensee is or
may become liable, the licensee shall forthwith, upon the written de-
mand of the department, file an additional bond in the same manner
and form with surety thereon approved by the department, in any
amount determined by the department to be necessary, failing which
the department shall forthwith cancel the license.

‘the department a new bond with surety satisfactory to the department
in the amount and form hereinbefore provided, the department shall
forthwith cancel the license. If the new bond is furnished by the
licensee as above provided, the department shall cancel the bond for
which the new bond is substituted.

Section 5. Section 188.580 of the Kentucky Revised Statutes is
amended to read as follows:

Mar. 14 HOUSE OF REPRESENTATIVES 115

(1) If a licensee at any time files a false quarterly report of the
information required, or fails or refuses to file the quarterly report or
to pay the full amount of the tax or violates any other provision of
KRS 138.560 to 138.640, inclusive, without a showing that such failure
was due to reasonable cause, the department may cancel the license
and suspend the privilege of acting as a special fuel dealer, special
fuel user, interstate special fuel user or heavy equipment special
fuel user.

(2) Upon voluntary surrender of the license certificate or upon
receipt of a written request by a licensee, the department may cancel
his license, effective sixty days from the date of request, but no such
license shall be cancelled upon surrender or request unless the licensee
has, prior to the date of cancellation, paid to this state all taxes, penal-
ties, interest and fines that are due or have accrued, and unless the
licensee has surrendered to the department his license certificate.

(8) If upon investigation the department ascertains that any
person to whom a license has been issued is no longer engaged as a
special fuel dealer, special fuel user, interstate special fuel user or
heavy equipment special fuel user and has not been so engaged for a
period of six months, the department may cancel such license by
giving the person sixty days’ notice of cancellation, mailed to his last
known address, in which event the license certificate shall be sur-
rendered to the department.

(4) Whenever a licensee ceases to engage in business within this
state, he shall notify the department in writing within fifteen days after
discontinuance. All taxes that have accrued under KRS 188.560 to
138.640, inclusive, whether or not then due, shall become due and
payable concurrently with such discontinuance. The licensee shall
make a report and pay all such taxes and any interest and penalties
thereon, and shall surrender to the department his license certificate.

(5) If the license is cancelled by the department as provided in
this section, and if the licensee has paid to this state all taxes, interest
and penalties due under KRS 138.560 to 138.640 and 138.990 (19) and
(21), the department shall cancel the bond filed by the licensee.

Section 6. Section 138.585 of the Kentucky Revised Statutes is
amended to read as follows:

Every licensee shall maintain complete records of all motor ve-
hicle equipment used, by type, weight and number of axles, mileage
records, inventories, purchases, sales, uses and other dispositions of
special fuel. Such records, together with manifests of lading, invoices,
correspondence and other papers pertaining to special fuel shall be
retained for a minimum period of two years and, if requested by the
department, shall be made available for examination by the depart-
ment.

Section 7. Section 138.590 of the Kentucky Revised Statutes is
amended to read as follows:

116 JOURNAL OF THE Mar. 14

(1) Every licensee shall file with the department, on forms pre-
scribed by the department, a quarterly tax return. The return shall be
made under penalty of perjury and shall show such information as
the department may require. The licensee shall file the return on or
before the last day of the next succeeding calendar month following
the quarterly period to which it relates.

(2) It shall be prima facie proof that all fuel received by a
licensee into storage tanks and dispensing equipment from which
special fuel is to be delivered to the fuel supply tank of a motor
vehicle operated on the public highways of this state is taxable as set
out in KRS 138.560 to 138.640.

(3) The quarterly tax return shall be accompanied by remittance
covering the tax due.

Section 8. Section 138.595 of the Kentucky Revised Statutes is
amended to read as follows:

(1) The taxes imposed by KRS 138.565, except as otherwise
provided under subsection (2) of this section, shall be computed by
multiplying the number of gallons of special fuel used by the tax rate.

(2)° Interstate special fuel users or heavy equipment special fuel
users if operating interstate shall pay tax on that proportion of total
special fuel used in motor vehicles operated on the public highways
of this state as the number of miles operated by these vehicles in this
state bears to the total number of miles operated.

Section 9. Section 138.600 of the Kentucky Revised Statutes is
amended to read as follows:

(1) If special fuel on which the tax under this Act has been paid,
pursuant to the provisions of subsection (1) of KRS 138.595 has been
used by a licensee in motor vehicles operated on the public highways
of both this state and other states, the licensee shall be credited to the
extent of the tax due under this section for the full amount of taxes
paid on special fuel purchased in Kentucky but consumed in another
state.

(2) The department shall at the close of each quarterly period,
ending September 30, December 31, March 31, and June 30, compute
all credits granted by the department during such quarter, which
credits shall be applied only to taxes due on any report filed within
the succeeding quarter, except that no credit shall operate to reduce
the amount of surtax due under this Act.

(8) The right to receive any credit under this section shall not
be assignable, except to the executor or administrator, or to the
receiver, trustee in bankruptcy, or assignee in insolvency proceedings
of such persons entitled thereto.

Section 10. Section 138.615 of the Kentucky Revised Statutes is
amended to read as follows:

(1) The department may audit the books and records of each
licensee who has at any time since the last audit was made applied

Mar. 14 HOUSE OF REPRESENTATIVES 117

for a credit thereunder and make such other investigations as it deems
necessary to determine whether the credits applied for constitute
proper claims.

(2) If special fuel taxes are erroneously credited, the depart-
ment shall advise the licensee of the erroneous credit. If the licensee
fails to reimburse the Commonwealth within fifteen days after the
receipt of notice, an action may be instituted by the department in
the Franklin Circuit Court and the department shall recover from the
licensee the amount of the erroneous credit plus a penalty of twenty
percent.

Section 11. Section 188.620 of the Kentucky Revised Statutes
is amended to read as follows:

The reports required by KRS 188.590 shall be accompanied by a
certified or cashier's check, payable to the State Treasurer, for the
amount of tax due for the preceding calendar quarter computed as
provided in KRS 188.595; except that the department may waive this
requirement and accept the check of the licensee if he is of sound
financial condition and has established a good record of compliance
with the requirements of KRS 138.560 to 138.640, inclusive.

Section 12. Section 138.625 of the Kentucky Revised Statutes
is amended to read as follows:

(1) If any licensee neglects or refuses to make the return or
pay the tax at the time provided in KRS 138.590, a penalty of twenty
percent of the tax and interest at six percent per annum from the
date when due shall be paid on both the tax and the penalty.

(2) If any licensee subject to the penalty provided in subsection
(1) of this section submits in writing to the department his reasons
for failure to comply with KRS 188.560 to 138.640, and if the depart-
ment finds the reasons sufficient evidence or justifiable cause for
modifying the penalty provided in subsection (1) of this section, it
may modify the penalty exacted therein to five percent of the amount
of the tax due and delinquent, provided the five percent penalty may
be reduced to a one percent penalty if the violation is the first’ viola-
tion by the taxpayer within the twelve months.

(3) If the penalties provided by this section are collected by
proceedings in court an additional penalty of twenty percent shall
be collected and distributed as authorized by KRS 134.400 and 135.060.

(4) Whenever any licensee neglects or refuses to make and file
any report for any quarter as required by KRS 188.590, or files an
incorrect or fraudulent report, the department shall determine, after
an investigation, the amount of the liability which the licensee has
incurred under this Act for any particular quarter, and assess and
collect the amount of tax and penalties due.

(5) Any licensee who fails to make any report required under
the provisions of KRS 188.560 to 188.640 within the time allowed may
be required to pay a penalty of $50 to be assessed and collected in

118 JOURNAL OF THE Mar. 14

the manner provided for the assessment and collection of taxes, or may
be proceeded against in a civil action instigated by the department.
In addition, such licensee may be compelled to make the required
return.

(6) In any action for the collection of the taxes due under this
Act and any penalties or interest imposed in connection therewith, an
assessment by the department of the amount of the tax due and the
interest or penalties due to the state shall constitute prima facie evi-
dence of the claim of the state, and the burden of proof shall be on the
licensee to show the assessment was incorrect and contrary to law.

Section 18. Section 138.630 of the Kentucky Revised Statutes is
amended to read as follows: ;

It is unlawful for any person to:

(1) Fail to pay the taxes due under this Act;

(2) Fail, neglect, or refuse to make and file any statement re-
quired under KRS 188.560 to 138.640, inclusive, in the manner or
within the time required;

(8) Make any false statement or conceal any material fact in
any record, report, or affidavit provided for under KRS 188.560 to
138.640, inclusive;

(4) Conduct any activities requiring a license under KRS 138.560
to 188.640, inclusive, without a license or permit or after a license or
permit has been surrendered, cancelled or revoked;

(5) Assign or attempt to assign a license to act as a special fuel
dealer, a special fuel user, an interstate special fuel user, or heavy
equipment special fuel user.

(6) Violate any other provisions of KRS 138.560 to 138.640,
inclusive.

Section 14. Section 138.640 of the Kentucky Revised Statutes
is amended to read as follows:

(1) The department shall administer the taxes provided under
KRS 188.560 to 138.640, inclusive, and may prescribe, adopt, and en-
force regulations relating to the administration and enforcement
thereof.

(2) The department shall, upon the request of the officials to
whom are entrusted the enforcement of the special fuel tax law of
any other state, the United States, the provinces or the Dominion of
Canada, forward to such officials any information which it may have
relative to the manufacture, receipt, sale, use, transportation, shipment
or delivery by any person of special fuel, provided such other state
or states provides for the furnishing of like information to this state.

Section 15. Section 188.655 of the Kentucky Revised Statutes is
amended to read as follows:

(1) “Department” means Department of Revenue.

(2) “Certificate” means the certificate of public convenience
and necessity as defined in KRS 281.010 (3).

Mar. 14 HOUSE OF REPRESENTATIVES 119

(8) “Person” includes every natural person, fiduciary, association,
state or political subdivision, or corporation. Whenever used in any
clause describing and imposing imprisonment the term “person” as
applied to an association means and includes the partners or members
thereof, and as applied to a corporation the officers thereof.

(4) “Public Highway” means every way or place generally open
to the use of the public as a matter of right for the purpose of vehicular
travel notwithstanding that it may be temporarily closed or travel
thereon restricted for the purpose of construction, maintenance, repair
or reconstruction.

(5) “Motor Carrier” means every person who operates or causes
to be operated on any highway in this state ed motor vehicle, trailer,
or semi-trailer, of a gross weight of not less than 18,001 pounds, en-
gaged in the transportation of persons or property in either private
or for-hire carriage in interstate commerce in this state, or who pur-
chases fuel without this state for consumption in this state in intra-
state commerce. The term “motor carrier” shall include every common
and contract carrier possessing authority as such from the Interstate
Commerce Commission together with those engaged in transporting
in interstate commerce in this state commodities not regulated by the
Interstate Commerce Commission. The term “motor carrier” shall not
mean or shall not include any person operating or causing to be
operated a city bus except city buses operated across the border of the
State of Kentucky.

(6) “Heavy Equipment Motor Carrier” means any person who
operates on the public highways of this state a motor vehicle, including
a trailer or semi-trailer, having more than three axles none of which
are closer together than 42 inches.

(7) A “licensee” for purposes of KRS 138.655 through 138.725
is any person who has been granted a license as a motor carrier or
a heavy equipment motor carrier.

(8) “City Bus” means any motor vehicle used for the transporta-
tion of persons for hire exclusively within the limits of any city or
within ten miles of its limits over a regular route and exclusively
within the boundaries of this state.

(9) “Use” means the consumption of gasoline in propelling
motor vehicles on the public highways.

(10) “Gasoline” means gasoline as defined in KRS 188.210 (4).

(11) “Quarterly” for the purposes of this act means a three-month
period ending June 30 in the year 1956 and each succeeding three-
month period thereafter.

Section 16. Section 188.660 of the Kentucky Revised Statutes
is amended to read as follows:

(1) Every motor carrier shall pay a tax of 7 cents per gallon on
the amount of gasoline used in operations on the public highways of
this state. =

120 JOURNAL OF THE Mar. 14

(2) In addition to the tax imposed in subsection (1), if the motor
carrier is a heavy equipment motor carrier as defined in Section 15
of this Act, he shall pay a surtax of 2 cents per gallon on the amount
of gasoline used in operations on the public highways of this state.

(8) The tax levied under subsections (1) and (2) of this section
shall be computed and paid as provided in KRS 138.690.

(4) Two-sevenths of all amounts received by reason of the tax
imposed by subsection (1) shall be set aside by the Department of
Highways for construction, reconstruction, and maintenance of the
rural and secondary highways of this state and for no other purpose.

Section 17. Section 188.665 of the Kentucky Revised Statutes is
amended to read as follows:

(1) A license shall be required of each motor carrier or heavy
equipment motor carrier before he uses or continues to use gasoline
on the public highways of this state.

(2) Application for a license shall be made to the Department of
Revenue on forms prepared and furnished by the department. The
application shall contain such information as the department deems
necessary.

(8) Concurrently with the filing of an application for a license,
the motor carrier or heavy equipment motor carrier shall file with the
department a bond as required under KRS 138.670. No license shall
be issued to any person unless such person has furnished a bond as
provided in KRS 138.670 to secure payment of taxes, penalties and
interest imposed by this Act.

(4) The application in proper form having been accepted for
filing, the bond having been accepted and approved and the other
conditions and requirements of this section having been complied
with, the department shall issue a license. However, if an application
for a license is filed by any person whose license has at any time pre-
viously been revoked for cause by the department, or if the depart-
ment is of the opinion that the person who makes the application as
a subterfuge for the real party in interest whose license, prior to the
time of filing the application, has been revoked for cause, or that
the application is not for any other reason filed in good faith or is not
for sufficient cause, the department may, after a hearing of which the
applicant shall be given ten days’ notice in writing and in which he
shall have the right to appear in person or by counsel and present
testimony, refuse to issue a license to that person.

(5) All licenses shall be valid and remain in full force and effect
until suspended or revoked for cause or otherwise cancelled.

(6) A license shall not be assignable or transferable and shall be
valid only for the person in whose name it is issued.

(7) The department shall keep and file all applications and
bonds, with an alphabetical index thereof.

(8) Each holder of such license shall display such license number
or other identification in the manner prescribed by the department.

Mar. 14 HOUSE OF REPRESENTATIVES 121

Section 18. Section 188.670 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Every motor carrier and heavy equipment motor carrier shall
file with the department a corporate bond, cash bond or securities
approved by the department in the minimum amount of five hundred
dollars and in a maximum amount of four months’ liability for taxes
imposed under this Act but not to exceed fifty thousand dollars. The
applicant for a license shall be the principal obligor and this state
shall be the obligee. The bond shall be conditioned upon the prompt
filing of true reports and the payment by the licensee to the department
of all taxes levied under this Act, together with all penalties and in-
terest thereon and generally upon faithful compliance with the pro-
visions of KRS 188.655 to 188.725.

(2) If the liability upon the bond is discharged or reduced,
whether by judgment rendered, payment made, or otherwise, or if in
the opinion of the department any surety has become unsatisfactory
or unacceptable, the department may require the licensee to file a
new bond with satisfactory surety in the same form and amount, failing
which the department shall forthwith cancel the license. If a new
bond is furnished by the licensee as above provided, the department
shall cancel the bond for which the new bond is substituted.

(8) If, upon hearing of which the licensee shall be given ten
days’ notice in writing, the department decides that the amount of
the existing bond is insufficient to insure payment to this state of
the amount of the tax, penalties and interest for which the licensee
is or may become liable, the licensee shall forthwith, upon written
demand of the department, file an additional bond in the same manner
and form with surety thereon approved by the department, in any
amount determined by the department to be necessary, failing which
the department shall forthwith cancel the license.

(4) Any surety on a bond furnished by a licensee shall be re-
leased from all liability to this state accruing on such bond after the
expiration of sixty days from the date upon which the surety has
lodged with the department, a written request to be released, but
this request shall not operate to release the surety from any liabilty
already accrued or which shall accrue before the expiration of the
sixty-day period. The department shall promptly, on receipt of the
request, notify the licensee who furnished the bond, and unless the
licensee shall, before the expiration of the sixty-day period, file with
the department a new bond with surety satisfactory to the department
in the amount and form hereinbefore provided, the department shall
forthwith cancel the license. If the new bond is furnished by the
licensee as above provided, the department shall cancel the bond
for which the new bond is substituted.

Section 19. Section 188.675 of the Kentucky Revised Statutes
is amended to read as follows:
(1) If a licensee at any time files a false quarterly report of the

122 JOURNAL OF THE Mar. 14

information required or fails or refuses to file the quarterly report
or to pay the full amount of the tax or violates any other provisions
of KRS 188.655 to 138.725, inclusive, without a showing that such
failure was due to reasonable cause, the department may cancel his
license.

(2) Upon voluntary surrender of the license certificate or upon
receipt of a written request by a licensee, the department may cancel
his license, effective sixty days from the date of the request, but no
such license shall be cancelled upon surrender or request unless the
licensee has, prior to the date of cancellation, paid to this state all
taxes, penalties, interest, and fines that are due or have accrued, and
unless the licensee has surrendered to the department his license
certificate.

(8) If upon investigation the department ascertains that any
motor carrier or heavy equipment motor carrier to whom a license has
been issued is no longer engaged as such and has not been so engaged
for a period of six months, the department may cancel such license by
giving the motor carrier or heavy equipment motor carrier sixty days’
notice of cancellation mailed to his last known address in which
event the license certificate shall be surrendered to the department.

(4) Whenever a licensee ceases to engage in business within
this state, he shall notify the department in writing within fifteen days
after discontinuance. All taxes that have accrued under KRS 138.655
to 138.725, inclusive, whether or not then due, shall become due and
payable concurrently with such discontinuance. The licensee shall
make a report and pay all such taxes and any interest and penalties
thereon, and shall surrender to the department his license certificate.

(5) If the license of a motor carrier or heavy equipment motor
carrier is cancelled by the department as provided in this section and
if the licensee has paid to this state all of the taxes, interest, and
penalties due under KRS 138.635 to 138.725 and 138.990 (20) and (21),
the department shall cancel the bond filed by the licensee.

Section 20. Section 138.680 of the Kentucky Revised Statutes is
amended to read as follows:

Every licensee shall maintain complete records on all motor
vehicles, by type, operating on Kentucky highways, weight and num-
ber of axles, mileage records, and records on all purchases, uses,
and other dispositions of gasoline. Such records, together with manifest
of lading, invoices and other papers pertaining to gasoline consump-
tion, shall be retained for a minimum period of two years; and if
requested by the department shall be made available for examination
by the department.

Section 21. Section 138.685 of the Kentucky Revised Statutes
is amended to read as follows:

(1) Every licensee shall file with the department, on forms pre-
scribed by the department, a quarterly tax return. The return shall be

Mar. 14 HOUSE OF REPRESENTATIVES 128

made under penalty of perjury and shall show such information as the
department may require. The licensee shall file the return on or before
the last day of the next succeeding calendar month following the
quarterly period to which it relates.

(2) The quarterly tax return shall be accompanied by a remit-
tance covering the tax due.

Section 22. Section 138.690 of the Kentucky Revised Statutes
is amended to read as follows:

The tax imposed by subsection (1) and (2) of KRS 138.660 shall
be determined as follows: The total number of gallons of gasoline
used during the taxable period in the licensee’s operations on the
public highways shall be multiplied by the proportion that its miles
operated in Kentucky during such period bears to its total miles
operated both within and without Kentucky during such period. The
resulting figure shall be deemed the number of gallons of gasoline used
during such period in Kentucky. This number of gallons shall be
multiplied by the tax rates.

Section 23. Section 188.695 of the Kentucky Revised Statutes
is amended to read as follows:

(1) Every licensee subject to the tax imposed by subsection (1)
and (2) of KRS 138.660 shall be entitled to a credit for each period
equivalent to seven cents per gallon on gasoline purchased by such
carrier during such period for use in its operations on public high-
ways within and without this state, provided such gasoline was pur-
chased in Kentucky during the same period and the tax imposed by
KRS 188.220 has beck paid. Evidence of the payment of such tax
in such form as may be required by or satisfactory to the department
shall be furnished by each such licensee claiming the credit herein al-
lowed.

Section 24. Section 138.705 of the Kentucky Revised Statutes is
amended to read as follows:

(1) The department may audit the books and records of each
licensee who has at any time since the last audit was made applied for
a credit thereunder and make such other investigations as it deems
necessary to determine whether the credits applied for constitute
proper claims.

(2) If gasoline taxes are erroneously credited, the department
shall advise the licensee of the erroneous credit. If the licensee fails
to reimburse the Commonwealth within fifteen days after the receipt
of notice, an action may be instituted by the department in the Frank-

124 JOURNAL OF THE Mar. 14

lin Circuit Court and the department shall recover from the licensee
the amount of the erroneous credit plus a penalty of twenty percent.

Section 25. Section 138.710 of the Kentucky Revised Statutes
is amended to read as follows:

The reports required by KRS 138.685 shall be accompanied by a
certified or cashier's check payable to the State Treasurer for the
amount of tax due for the preceding calendar quarter computed as
provided in KRS 138.690, except that the department may waive this
requirement and accept the check of the licensee if he is of sound
financial condition and has established a good record of compliance
with the requirements of KRS 138.655 to 138.725, inclusive.

Section 26. Section 138.715 of the Kentucky Revised Statutes
is amended to read as follows:

(1) If any licensee neglects or refuses to make the return or pay
the tax at the time provided in KRS 138.685, a penalty of 20 percent
of the tax and interest at 6 percent per annum from the date when
due shall be paid on both the tax and the penalty.

(2) If any licensee subject to the penalty provided in subsection
(1) of this section submits to the department in writing the reasons
for failure to comply with KRS 188.655 to 188.725 and if the depart-
ment finds the reasons sufficient evidence or justifiable cause for
modifying the penalty provided in subsection (1) of this section, it
may cent the penalty enacted therein to 5 percent of the amount
of the tax due and delinquent, provided the 5 percent penalty may be
reduced to one percent penalty if the violation is the first violation
by the taxpayer within the twelve months.

(8) If the penalties provided by this section are collected by
proceedings in court, an additional penalty of 20 percent shall be
collected and distributed as is authorized by KRS 134.400 and 135.060.
Whenever any licensee neglects or refuses to make and file any
report for any calendar quarter as required by KRS 138.685, or files
an incorrect or fraudulent report, the department shall determine
after an investigation the amount of the liability which the licensee
has incurred under this Act for any particular quarter and assess and
collect the amount of tax and penalties due.

(4) Any licensee who fails to make any report required under
the provisions of KRS 138.655 to 188.725 within the time allowed may
be required to pay a penalty of $50 to be assessed and collected in
the manner provided for the assessment and collection of taxes, or
may be proceeded against in a civil action instigated by the depart-
ment. In addition, such licensee may be compelled to make the
required return.

(5) In any action for the collection of taxes due under this Act
and any penuliies or interest imposed in connection therewith, an
assessment by the department of the amount of tax due and the
interest or penalties due to the state shall constitute prima facie

Mar. 14 HOUSE OF REPRESENTATIVES 125

evidence of the claim of the state and the burden of proof shall be
on the licensee to show that the assessment was incorrect or contrary
to law.

Section 27. Section 138.725 of the Kentucky Revised Statutes
is amended to read as follows:

(1) The Department of Revenue shall administer the provisions
of KRS 138.655 to 188.725 and 138.990 (20) and (21), and may pre-
scribe, adopt and enforce regulations relating to the administration
and enforcement thereof.

(2) The Department of Revenue shall, upon the request of the
officials to whom are entrusted the enforcement of the gasoline tax
law of any other state, the United States, or the provinces of the
Dominion of Canada, forward to such officials any information which
it shall have relative to the receipt, sale, use, transportation, shipment,
or delivery by any person of gasoline, provided such state or states
make provision in its law for the furnishing of like information to
this state.

Section 28. Section 138.990 of the Kentucky Revised Statutes
is amended to read as follows:

(1) Any person who violates any of the provisions of KRS 138.020
to 138.070 shall be fined not more han five hundred dollars for each
offense, and his license, if one is required, may be revoked at the
discretion of the court.

(2) Any person who violates any of the provisions of KRS 138.080
shall be guilty of a felony and shall be fined not more than one
thousand dollars or imprisoned for not more than five years, or both.

(3) Any person who violates any of the provisions of KRS 138.100
or 188.110 shall be fined not less than fifty dollars nor more than
five hundred dollars.

(4) Any person who violates any provision of KRS 188.140 to
138.200 for which a specific penalty is not provided, or who violates
any reasonable rule or regulation promulgated by the department
under KRS 188.140 to 138.200, shall be fined not less than twenty-
five dollars nor more than five hundred dollars for the first offense;
for each subsequent offense he shall be fined not less than fifty
dollars nor more than one thousand dollars and, if the offender is an
individual, may be confined in the county jail for not more than six
months, or both so fined and imprisoned. These fines shall be in
addition to the civil penalties provided by KRS 138.170.

(5) Any person who violates any of the provisions of KRS 138.180
shall be guilty of a misdemeanor and shall be fined not less than
one hundred dollars nor more than one thousand dollars, or im-
prisoned for not less than one nor more than five years, or both.

(6) Any person who violates any of the provisions of KRS 138.200
shall be fined not more than one thousand dollars, and if the offender
is an individual he may be confined in the county jail for not more

126 JOURNAL OF THE Mar. 14

than six months, or both so fined and imprisoned. These fines shall
be in addition to the civil penalties provided by KRS 138.170.

(7) Any person who fails to remit gasoline tax money to the
state as provided in KRS 138.280 is guilty of embezzlement of state
funds, and shall be fined not more than one thousand dollars or im-
prisoned in the county jail for not more than six months, or both. Upon
conviction of a second offense he shall be imprisoned for not less than
one year nor more than five years in the state penitentiary.

(8) Any person who violates any of the ee of KRS 138.300
shall be fined not less than twenty-five dollars nor more than one
thousand dollars, or imprisoned in the county jail for not more than
six months, or both. This penalty shall be in addition to the penalty
provided in subsection (7) of this section.

(9) Any person who violates KRS 138.310 shall be fined not less
than one hundred dollars nor more than one thousand dollars, or im-
prisoned in the county jail for not less than thirty days nor more than
one year, or both. Each day or part of day of doing business as a
dealer without an uncancelled license shall be a separate offense.

(10) Any person who willfully violates any of the provisions of
KRS 138.370 shall be fined not less than one dollar nor more than
one thousand dollars, or imprisoned in the county jail for not more
than one year, or both.

(11) Any person who violates any of the provisions of KRS
138.410 shall be fined not less than twenty-five dollars nor more than
one thousand dollars, or imprisoned in the county jail for not more
than six months, or both.

(12) Any person who violates any of the provisions of subsection
(4) of KRS 138.440 shall be fined not less than fifty dollars nor more
than three hundred dollars, or imprisoned in the county jail for not
more than one year, or both.

(13) Any person who violates any of the provisions of KRS
138.460 or 138.470 shall be fined not less than twenty-five dollars
nor more than one thousand dollars. If the offender, is an individual,
he may be imprisoned in the county jail for not more than six months,
or both so fined and imprisoned.

(14) Any person who violates any of the provisions of KRS
138.480 or 138.490 shall be fined not more than one thousand dollars
or imprisoned in the county jail for not more than thirty days, or both.

(15) If any offender under the provisions of subsection (2), (7),
(8), (9), (11) or (14) of this section is a corporation, the principal officer
or the officer directly responsible for the violation, or both, may be
imprisoned as provided in those subsections.

(16) Any person who violates any provision of subsection (1)
of KRS 138.354, whether or not his permit has been revoked by the
commission, shall be guilty of a misdemeanor, and upon conviction
thereof shall be fined not less than one hundred dollars nor more

Mar. 14 HOUSE OF REPRESENTATIVES 127

than five hundred dollars, or imprisoned not exceeding one year,
or both, in the discretion of the court.

(17) Any person, other than the holder of a refund permit, who
shall knowingly violate any provisions of KRS 138.843 to 138.357,
shall be guilty of a misdemeanor and upon conviction thereof shall
be fined not less than one hundred dollars nor more than five hundred
dollars, or imprisoned not exceeding one year, or both, in the dis-
cretion of the court.

(18) Any person who makes a false or fraudulent statement in
an application made pursuant to KRS 138.842 for a refund of taxes
provided by KRS 188.341 or who fraudulently obtains such a refund
or who knowingly aids or assists in making such a false or fraudulent
statement or claim for refund, shall be guilty of a misdemeanor, and
upon conviction thereof shall be fined not less than one hundred dol-
lars nor more than five hundred dollars, or imprisoned not exceeding
one year, or both, in the discretion of the court.

(19) Any person violating any provision of KRS 138.630 is guilty
of a misdemeanor, unless the act is by any other law of this state
declared to be a felony, and upon conviction is punishable by a fine
of not less than $19 nor more than $500, or by imprisonment in the
county jail for not Jess than thirty days nor more than six months, or
by both such fine and imprisonment. The fine and imprisonment pro-
vided for in this subsection shall be in addition to any other penalty
imposed by any other provision of KRS 138.560 to 138.640,

(20) Any person violating any provision of KRS 138.655 to KRS
188.725 is guilty of a misdemeanor and upon conviction is punishable
by a fine of not less than $19 nor more than $500 or by imprisonment
in the county jail for not less than thirty days nor more than six
months or by both such fine and imprisonment.

(21) Any person found operating any motor vehicle in this state
requiring a license under the provisions of KRS 138.560 through 138.640
or 138.655 through 138.725 without such license or after such license has
been surrendered, cancelled, or revoked may, in addition to the
penalties provided in subsections (19) and (20) of this section have
such motor vehicle seized by any officer duly authorized to enforce
the provisions of this Act.

(22) The fine and imprisonment provided for in subsection (20)
of this section shall be in addition to any other penalty imposed by
any other provisions of KRS 138.640 to KRS 138.725.

Section 29. Sections 138.605, 138.610, 188.650 and 138.700 of
the Kentucky Revised Statutes and Section 1, subsection (9), of House
Bill 479 passed by the 1956 Regular Session of the Kentucky General
Assembly are hereby repealed.

Section 30. Whereas, it is to the best interest of the people of
the Commonwealth of Kentucky that the provisions of this Act take
effect at the earliest possible date, an emergency is declared to exist

128 JOURNAL OF THE Mar. 14

and this Act shall become effective immediately upon its passage and
approval by the Governor.

HR 5: A JOINT RESOLUTION providing for study by the De-
partment of Highways regarding the establishing of a highway atop
the proposed Markland Dam and possible source of revenue to assist
in financing same.

WHEREAS, travel by the populace of the north central section
of the Commonwealth of Kentucky, across the Ohio River, is restricted
or made inconvenient by the fact that there are a limited number of
bridges most of which are concentrated in a small area; and

WHEREAS, it appears desirable that additional means of access
to our sister states north of the Ohio River be provided; and

WHEREAS, the approximate cost of a highway bridge across the
Ohio River would range between eight and ten million dollars; and

WHEREAS, the expenditure of approximately two hundred
thousand dollars for additional supports to the proposed dam would
result in a savings to the Commonwealth of approximately eighty per-
cent; and

WHEREAS, it would appear that the need for such bridge will
become even greater in the near future.

NOW, THEREFORE,

Be it resolved by the General Assembly of the Commonwealth
of Kentucky:

That the Department of Highways immediately make a study to
determine the practicability, feasibility, utility and possibility of con-
structing a highway across the proposed Markland Dam and make
a report of its findings to the General Assembly. That a further in-
vestigation be made into the possibility of obtaining federal funds
to assist in paying the cost of such a project. That said report of the
findings of the Highway Department be submitted at the earliest pos-
sible date.

Representative Melton moved that the rules be suspended for
introduction of a resolution. Agreed.

Introduction of Resolution
HR 6, by Representative Melton: A RESOLUTION requesting
that the Kentucky High School Athletic Association in cooperation with
its member schools make available tickets for the 1956 Kentucky State
Basketball Tournament to members of the General Assembly of the
Commonwealth of Kentucky.

WHEREAS, it appears that the supply of tickets for the 1956

Kentucky State Basketball Tournament, available for purchase by the
general public, has been exhausted; and

Mar. 14 HOUSE OF REPRESENTATIVES 129

WHEREAS, the press of duties in connection with the regular and
extraordinary sessions of the 1956 General Assembly has prevented
many if not all the members thereof from being able to secure tickets
to said tournament; and

WHEREAS, the welfare of the athletic program of the public
schools of the Commonwealth of Kentucky is of primary interest to
members of the General Assembly,

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky:

Section 1. That the Kentucky High School Athletic Association,
in cooperation with its member schools, make available to the members
of the General Assembly tickets for the 1956 Kentucky State High
School Basketball Tournament.

Section 2. That the clerk of the House of Representatives cause
copies of this resolution to be mailed to the commissioner of the Ken-
tucky High School Athletic Association and to each of the county
school superintendents in the Commonwealth of Kentucky.

Representative Melton moved adoption of HR 6. Adopted.

Representative Harris moved that the House adjourn until 11:00
A.M., March 15th. Agreed.

130 JOURNAL OF THE Mar. 15

THURSDAY, MARCH 15, 1956
SIXTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend John C. Chenault of the First Christian
Church, Frankfort.

The roll was called. All present except Buchanan, Cornett, Day,
Embry, Everett, Flanery, Freeman, Heyburn, Durham Howard, Ku-
bale, Moore, Murphy, Nunnelley, Qualls, John B. Reed, Stith, Wein-
traub, and Lynn Wells, who were granted leaves of absence on motion
of Representative Morgan.

Reading of the Journal for March 14, 1956, dispensed with and the
same approved on motion of Representative Isler.

Calendar
HB 8 and HR 5 taken from the Calendar and read at length for
the second time. Ordered placed in Orders of the Day.

Orders of the Day

HR 3 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 76—Anderson, Barnum, Bates,
Baumgardner, Beshear, Billington, Blankenship, Blue, Breckinridge,
Bridgers, Burnley, Bush, Carter, Casey, Caudill, Conrad, Cottengim,
Davis, Dunsil, Farmer, Flanery, Gay, Greene, Griffin, Grigsby, Grundy,
Gullette, Hadden, Hahn, Harris, Hawkins, Heskamp, Highland, Hill,
Hilton, Hinkle, Holsclaw, C. S. Howard, Isler, Johnson, Kubale, Low-
man, Mackey, Martin, McCallum, McFadden, McKinney, Melton,
Miller, Morgan, Mullins, Newsom, Ockerman, Parrish, Peace, Pollitte,
Ratcliffe, Ray, Rayburn, V. Reed, H. V. Reid, R. Reid, Sr., Reynolds,
Searcy, Sloan, Tanner, Thomas, Thompson, Tinsley, Walsh, Wathen,
A. W. Wells, Williamson, Wilson, Wirsch, Young. Nays 2—Hislope,
Lambert.

HR 3 was passed and the title agreed to.

Representative Morgan moved that the vote by which said resolu-
tion was passed be reconsidered and said motion be laid on the table.
Agreed.

HB 4 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed. ~

On roll call, the vote was yeas 79 — Anderson, Barnum, Bates,
Baumgardner, Beshear, Billington, Blankenship, Blue, Breathitt, Breck-
inridge, Bridgers, Burnley, Bush, Carter, Casey, Caudill, Conrad, Cot-

tengim, Davidson, Davis, Dunsil, Farmer, Flanery, Gay, Greene,

Mar. 15 HOUSE OF REPRESENTATIVES 131

Griffin, Grigsb Y: Grundy, Gullette, Hadden, Hahn, Harris, Hawkins,
Heskamp, Highland, Hill, Hilton, Hinkle, Hislope, Holsclaw, C. S.
Howard, Isler, Jennings, Johnson, Kubale, Lowman, Mackey, Martin,
McCallum, McFadden, McKinney, Melton, Miller, Mullins, Newsom,
Nunn, Ockerman, Parrish, Peace, Pollitte, Ratcliffe, Ray, Rayburn,
V. Reed, H. V. Reid, R. Reid, Sr., Reynolds, Searcy, Sloan, Tanner,
Thomas, Thompson, Tinsley, Wathen, A. W. Wells, L. B. Wells, Wil-
liamson, Wirsch, Young. Nays 0.

HB 4 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved to adjourn until 8:00 P.M., March
19th. Agreed.

132 JOURNAL OF THE Mar. 19

MONDAY, MARCH 19, 1956
NINTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend Carter Roberts of the Church of the
Nazarene, Frankfort.

The roll was called. All present except Anderson, Baumgardner,
Bush, Caudill, Conrad, Greene, Gullette, Heyburn, Hislope, Durham
W. Howard, Jennings, Kubale, Lowman, Miller, Murphy, Nunn, Nun-
nelley, Reynolds, Saylor, and Weintraub, who were granted leaves of
absence on motion of Representative Morgan.

Reading of the Journal for March 15, 1956, dispensed with and the
same approved on motion of Representative Isler.

Senate Message
Senate message announcing passage of SB 1. Ordered that said
bill be referred.
Introduction of Resolution
HR 7, by Representative Cornett: A RESOLUTION commending
the Carr Creek basketball team upon its achievement in winning the
1956 Kentucky State High School Basketball Tournament.

WHEREAS, the basketball team of Carr Creek High School
emerged victorious in the 1956 Kentucky State High School Basketball
Tournament; and

WHEREAS, this feat was accomplished by the said Carr Creek
teams’ eliminating four other Kentucky high school basketball teams
which furnished the best competition available; and

WHEREAS, the performance of the Carr Creek team reflected the
highest credit upon the school which it represented and upon Kentucky
high school basketball not only in terms of technical proficiency but
in a practical demonstration of sportsmanship; and

WHEREAS, it appears desirable that this honorable body join
other citizens of the Commonwealth in honoring the achievement of
the said Carr Creek basketball team;

NOW, THEREFORE,

Be it resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky:

Section 1. That the House of Representatives of the Common-
wealth of Kentucky does hereby extend its expression of commendation
to the basketball team of Carr Creek High School for its achievement
in winning the 1956 Kentucky State High School Basketball Tourna-
ment.

Section 2. That the Clerk of the House cause copies of this

Mar. 19 HOUSE OF REPRESENTATIVES 138

Resolution to be sent to the County Superintendent of Schools of
Knott County, to the Principal of Carr Creek High School and to the
coach and each of the players of the 1956 team.

Representative Morgan moved adoption of HR 7. Adopted.

Report of Committee
Representative Morgan moved that the rules be suspended for
a Committee Report. Agreed.
Committee on Rules reported SB 1 with the expression of opinion
that the same should pass. Read at length for the first time and ordered
placed in the Calendar.

SB 1: AN ACT relating to motor trucks and motor vehicles estab-
lishing and regulating the maximum weight and dimensions thereof
and authorizing the Commissioner of Highways to designate classifica-
tion of highways for the purpose of regulating said maximum weights.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Section 189.010 of the Kentucky Revised Statutes is
amended to read as follows:

As used in this chapter, unless the context requires otherwise.

(1) “Department” means the Department of Highways.

(2) “Highway” means any public road, street, avenue, alley or
boulevard, bridge, viaduct or trestle and the approaches to them.

(8) “Motor truck” means any motor-propelled vehicle designed
for carrying freight or merchandise. It shall not include self-propelled
vehicles designed primarily for passenger transportation, but equipped
with frames, racks or bodies having a load capacity of not exceeding
one thousand pounds.

(4) “Operator” means the person in actual physical control of
a vehicle.

(5) “Semitrailer” means a vehicle designed to be attached to,
and having its front end supported by, a motor truck or truck tractor,
intended for the carrying of freight or merchandise and having a load
capacity of over one thousand pounds.

(6) “Truck tractor” means any motor-propelled vehicle designed
to draw and to support the front end of a semitrailer. The semitrailer
and the truck tractor shall be considered to be one unit.

(7) “Sharp curve” means a curve of not less than thirty degrees.

(8) “State Highway Patrol” means any agency for the enforce-
ment of the highway Jaws established pursuant to KRS 12.030, 176.020
and 281.380.

134 JOURNAL OF THE Mar. 19

(9) “Steep grade” means a grade of exceeding seven percent.

(10) “Trailer” means any vehicle designed to be drawn by a
motor truck or truck tractor, but supported wholly upon its own
wheels, intended for the carriage of freight or merchandise, and having
a load capacity of over one thousand pounds.

(11) “Unobstructed highway” means a straight, level, first-class
road upon which no other vehicle is passing or attempting to pass,
and upon which no other vehicle or pedestrian is approaching in the
_ opposite direction, closer than three hundred yards.

(12) “Vehicle” includes all agencies for the transportation of
persons or property over or upon the public highways of this Com-
monwealth and all vehicles passing over or upon said highways, ex-
cepting road rollers, road graders, farm tractors, vehicles on which
power shovels are mounted, such other construction equipment cus-
tomarily used only on the site of construction and which is not prac-
tical for the transportation of persons or property upon the highways,
such vehicles as travel exclusively upon rails, and such vehicles as are
propelled by electric power obtained from overhead wires while
being operated within any municipality or where said vehicles do not
travel more than five miles beyond the city limit of any municipality.
“Motor vehicle” includes all vehicles as defined above which are
_ propelled otherwise than by muscular power.

Section 2. Section 189.222 of the Kentucky Revised Statutes is
amended to read as follows:

The Commissioner of Highways, in respect to highways which
are a part of the state-maintained system, by official order, may in-
crease on designated highways or portions thereof, the maximum
height, length and gross weight prescribed in KRS 189.221, if in the
opinion of said commissioner, the increased height, length and weight
designated by him are justified by the strength, safety and durability
of the designated highways, and said highways do not appear sus-
ceptible to unreasonable and unusual damage by reason of such in-
creases; and said commissioner is authorized to establish reasonable
classifications of such roads and to fix a different maximum for each
classification. However, in no event shall any motor truck or tractor
semitrailer combination, including any part of the body or load,
exceed the following dimensions and weights:

(1) Height, 12% feet.

(2) Length, truck tractors and semitrailers, 48 feet; motor trucks,
35 feet.

(3) Weight, 18,000 pounds per single axle, with axles less than
42 inches apart to be considered as a single axle; 32,000 pounds on
two axles in tandem arrangement which are spaced 42 inches or more
apart and less than 120 inches apart; 600 pounds per inch of aggregate
width of all tires; gross weight, 59,640 pounds.

(4) A tolerance of not more than five percent per axle load shall
be permitted before a carrier is deemed to have violated subsection

Mar. 19 HOUSE OF REPRESENTATIVES 135

(3) of this section. In no event shall the gross weight exceed 59,640
pounds.

Section 3. Whereas, it is to the best interest of the people of the
Commonwealth of Kentucky that the provisions of this Act take
effect at the earliest possible date, an emergency is declared to exist
and this Act shall become effective immediately upon its passage and
approval by the Governor.

Representative Morgan moved that the rules be suspended for
introducing a Resolution. Agreed.

Introduction of Resolution
HR 8, by Representative Morgan: A CONCURRENT RESOLU-
TION authorizing and directing the Legislative Research Commission
to make a detailed study of certain merchandising practice of the
Gasoline Industry to determine what regulatory legislation, if any, is
needed with respect to such practice.

Orders of the Day

HB 8 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 80—Barnum, Bates, Beshear, Bil-
lington, Blankenship, Blue, Breathitt, Breckinridge, Bridgers,. Buchan-
an, Burnley, Carter, Casey, Cornett, Cottengim, Davidson, Davis, Day,
Dunsil, Everett, Farmer, Fitzpatrick, Flanery, Freeman, Gay, Griffin,
Grigsby, Grundy, Hadden, Hahn, Harris, Hawkins, Highland, Hill,
Hilton, Hinkle, Holsclaw, C. S$. Howard, Isler, Johnson, Kubale, Lam-
bert, Mackey, Martin, McCallum, McFadden, McKinney, Melton,
Moore, Morgan, Mullins, Newsom, Nunn, Ockerman, Parrish, Peace,
Pollitte, Qualls, Ratcliffe, Ray, Rayburn, J. B. Reed, V. Reed, H. V.
Reid, R. Reid, Sr., Reynolds, Searcy, Sloan, Stith, Tanner, Thompson,
Tinsley, Walsh, Wathen, A. W. Wells, L. B. Wells, Williamson, Wilson,
Wirsch, Young. Nays 0.

HB 8 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved to adjourn until 1:00 P.M., March
20th. Agreed.

186 JOURNAL OF THE Mar. 20

TUESDAY, MARCH 20, 1956
TENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend Fred T. Moffett of the First Baptist
Church, Frankfort.

The roll was called. All present except Blue, Breathitt, Breckin-
ridge, Buchanan, Cottengim, Embry, Everett, Farmer, Gullette, Harris,
Hislope, Durham W. Howard, Lambert, Lowman, McCallum, Nun-
nelley, Ray, Rayburn, John B. Reed, Reynolds, Weintraub, and Wil-
liamson, who were granted leaves of absence on motion of Represen-
tative Morgan.

Senate Message

Senate message announcing passage of SB 2. Ordered that said
bill be referred.

Reading of the Journal for March 19, 1956, dispensed with and the
same approved on motion of Representative Isler.

Introduction of Resolution
HR 9, by Representative Gay: A RESOLUTION expressing ap-
proval of the House of Representatives of the proposed construction,
by the Federal Government, of a dam on the middle fork of the Ken-
tucky River at Buckhorn, Kentucky.

WHEREAS, the area adjacent to and surrounding the middle fork
of the Kentucky River has been subjected to numerous costly and
disastrous floods; and

WHEREAS, the President of the United States of America has
included in the proposed budget, to be presented to the present session
of the Congress of the United States, the sum of one million dollars for
the purpose of contsructing a dam on said middle fork of the Kentucky
River;

NOW, THEREFORE,

Be it resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky:

Section 1. That the House of Representatives of the Common-
wealth of Kentucky does hereby go on record as expressing approval
of the construction of a dam on the middle fork of the Kentucky River
at Buckhorn Kentucky for the purpose of flood control.

Representative Morgan moved adoption of HR 9. Adopted.

Calendar
SB 1 was taken from the Calendar and read at length for the
second time. Ordered placed in Orders of the Day.
Representative Morgan moved the rules be suspended in order to
make a motion. Agreed.

Mar. 20 HOUSE OF REPRESENTATIVES 137

Report of Committee
Representative Morgan moved that the rules be suspended for
a Committee Report. Agreed.
Committee on Rules reported SB 2 with the expression of opinion
that the same should pass. Read at length for the first time and ordered
placed in the Calendar.

SB 2: AN ACT relating to the control of Johnson grass on state
right of ways.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. The Department of Highways shall at all times keep
all state right of ways free of the species of grass, sorghum, halepense,
commonly known as Johnson grass which is a noxious weed and is a
threat to the agriculture of the State. When such grass is found grow-
ing upon any state right of way, the department shall take steps to
eradicate such grass by the use of chemicals or any other effective
means,

Section 2. The Department of Highways shall notify the owner
or tenant, whichever may be operating the farm adjacent to the right
of way, of the approximate date that the eradication work is to be
performed. Notice shall be given to the owner or tenant so as to
provide at least three days in which to allow the owner or tenant suf-
ficient time to remove his livestock from the fields adjacent to the right
of way on which the eradication work is to be performed. The
department shall advise the owner or tenant of land adjacent to the
right of way treated of the nature of any chemicals used and of the
effect such chemicals or process used will have on any livestock. The
Department of Highways shall further advise said owner or tenant
of the length of time required for the chemical action or reaction to
dissipate to the point where there will be no harmful effects on any
livestock.

Orders of the Day

Representative Morgan moved that HR 5 be taken from the
Orders of the Day and placed on passage. Agreed.

Representative Day moved to amend HR 5 as follows:

“Amend printed copy of HR 5 on page 1, ‘Delete the fourth
WHEREAS Clause in its entirety and substitute in lieu thereof, the
following:

WHEREAS, an agreement has been entered into by the officials
of the State of Indiana and the Commonwealth of Kentucky to share

138 JOURNAL OF THE Mar. 20

the cost of needed additional supports to the proposed dam; and’.”
Adopted.

Representative Day moved to amend HR 5 as follows:

“Amend printed copy of HR 5 on page 2, lines 1 through 8, Delete
on page 2 lines 1 through 8 in their entirety and substitute in lieu
thereof, the following:

‘That the Department of Highways immediately make a study to
determine the means of financing the construction of a highway across
the proposed Markland Dam, and the Department of Highways is
urged to proceed with the construction of the aforesaid highway as
soon as practicable. That a further investigation be made into the
possibility of obtaining federal funds or funds from any adjoining
state to assist in paying the costs of such projects’.” Adopted.

Representative Day moved that HR 5 as amended be placed on
passage. Agreed. HR 5 as amended read at length for the third time.
Representative Morgan moved the Previous Question. Agreed.

On roll call, the vote was yeas 73—Anderson, Barnum, Bates,
Baumgardner, Beshear, Billington, Blankenship, Breathitt, Bridgers,
Burnley, Bush, Carter, Casey, Caudill, Conrad, Cornett, Davidson,
Davis, Day, Dunsil, Farmer, Flanery, Freeman, Gay, Greene, Griffin,
Grigsby, Grundy, Hadden, Hahn, Hawkins, Heskamp, Highland, Hill,
Hilton, Hinkle, Holsclaw, C. S. Howard, Isler, Johnson, Kubale,
Mackey, Martin, McFadden, McKinney, Melton, Moore, Morgan, Mul-
lins, Murphy, Newsom, Nunn, Parrish, Pollitte, Qualls, Ratcliffe, J. B.
Reed, V. Reed, R. Reid, Sr., Saylor, Searcy, Sloan, Stith, Tanner,
Thompson, Tinsley, Walsh, Wathen, A. W. Wells, L. B. Wells, Wilson,
Wirsch, Young. Nays 1~Thomas.

HR 5 was passed and the title agreed to.

Representative Morgan moved that the vote by which said resolu-
tion was passed be reconsidered and said motion be laid on the table.
Agreed.

On roll call, the vote was yeas 71—Anderson, Barnum, Bates,
Baumgardner, Beshear, Billington, Blankenship, Breathitt, Bridgers,
Burnley, Carter, Casey, Caudill, Conrad, Cornett, Davidson, Davis,
Day, Dunsil, Flanery, Freeman, Gay, Greene, Griffin, Grigsby, Grundy,
Hadden, Hahn, Hawkins, Heyburn, Highland, Hill, Hinkle, Holsclaw,
C. S. Howard, Isler, Johnson, Kubale, Mackey, Martin, McFadden,
Melton, Moore, Morgan, Mullins, Murphy, Newsom, Nunn, Parrish,
Peace, Pollitte, Qualls, Ratcliffe, J. B. Reed, V. Reed, H. V. Reid,
R. Reid, Sr., Reynolds, Saylor, Searcy, Sloan, Stith, Thompson, Tinsley,
Walsh, Wathen, A. W. Wells, L. B. Wells, Wilson, Wirsch, Young.
Nays 1—Ockerman.

Mar. 20 HOUSE OF REPRESENTATIVES 139

HB | was passed and the title agreed to.
Representative Morgan moved that the vote by which HB 1 was
passed be reconsidered and said motion be laid on the table. Agreed.

Introduction of Resolutions
HR 10, by Representative Isler: A RESOLUTION expressing
sympathy of the membership for Representative Morris Weintraub
and wishing him a speedy recovery.

WHEREAS, Representative Morris Weintraub has been ill and
confined to his bed; and

WHEREAS, Representative Morris Weintraub is one of the most
colorful members of the House of Representatives and his illness is
regretted by his colleagues; and

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky:

That the membership of the House of Representatives hereby
extends to Representative Morris Weintraub its sympathy and best
wishes for a speedy recovery and that a copy of this resolution be
forwarded to him.

Representative Isler moved adoption of HR 10. Adopted.

AR 11, by Representative Holsclaw: A RESOLUTION expressing
condolences to Brooks Hargrove.

WHEREAS, the Honorable Brooks Hargrove, Assistant Clerk of
the House of Representatives, is confined to a hospital suffering with
a heart attack,

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky:

That the House of Representatives does hereby express its con-
dolences to the Honorable Brooks Hargrove, and extends its best
wishes for a speedy recovery from his illness.

Representative Holsclaw moved adoption of HR 11. Adopted.

Representative Morgan moved to adjourn until 10:00 A.M., March
2\st. Agreed.

140 JOURNAL OF THE Mar, 21

WEDNESDAY, MARCH 21, 1956
ELEVENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend T. Herbert Tinsley, Member of the House
of Representatives.

The roll was called. All present except Bates, Breckinridge, Em-
bry, Everett, Griffin, Grundy, Gullette, Heskamp, Hislope, Durham
W. Howard, Lambert, Melton, Nunnelley, Rayburn, Vernon Reed,
Walsh, and Weintraub, who were granted leaves of absence on motion
of Representative Morgan.

Reading of the Journal for March 20, 1956, dispensed with and
the same approved on motion of Representative Isler.

Introduction of Resolution
HR 12, by Representative Burnley: A CONCURRENT RESOLU-
TION memorializing Congress to enact legislation designed to insure
the construction of a high dam on the lower Cumberland River.

WHEREAS, the region traversed by the Cumberland River has
been the scene of numerous floods which have caused great and
extensive damage to property and have moreover added to the
steady depletion of the natural resources of the Commonwealth and
of the nation; and

WHEREAS, power production facilities in said area are insuffi-
cient to meet the demand with the result that large industries vital
to the economic well being of the citizens of the area are reluctant to
establish there; and

WHEREAS, it appears desirable that Cumberland River be
deepened thereby making more of its length navigable and affording
industries of the area a more economic means of shipping their prod-
ucts; and

WHEREAS, it appears desirable that the citizens of the area be
provided with a plan of recreation not only for their own enjoyment
and welfare but as an inducement to tourist trade with its direct
economic benefits;

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky, the Senate concurring therein:

Section 1. That the Congress of the United States act, in the
exercise of its broad legislative powers, to insure the construction,
with all possible haste commensurate with the exercise of sound
judgment, of a high dam on the lower Cumberland River.

Section 2. That the Clerk of the House cause copies of this
resolution to be sent to the President of the Senate of the United

Mar. 21 HOUSE OF REPRESENTATIVES 141

States, the Speaker of the House of i aes of the United
States and the Kentucky delegation to the Congress of the United
States.

Representative Burnley moved adoption of HR 12. Adopted.

Representative Clyde S. Howard expressed appreciation for the
breakfast given by the members from the First Congressional District
for members of the Legislature and state officials, and moved that the
acknowledgement be spread on the Journal. Agreed.

Representative Morgan moved that the House do now recess for
15 minutes for a Rules Committee Meeting. Agreed. At the appointed
hour, the Speaker resumed the Chair and called the House to order.

Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.

Report of Committee
Committee on Rules reported HR 8 with the expression of opinion
that the same should pass. Read at length for the first time and ordered
placed in the Calendar.

HR 8: A CONCURRENT RESOLUTION authorizing and direct-
ing the Legislative Research Commission to make a detailed study of
certain merchandising practice of the Gasoline Industry to determine
what regulatory legislation, if any, is needed with respect to such
practice.

WHEREAS, it appears that certain ap refiners and distributors
of motor oils and fuels doing business in the Commonwealth of Ken-
tucky are guilty of discriminatory marketing practices with respect
to retail dealers in their products through the medium of rebates, sale
of products to dealers at less than cost, and irregular and misleading
advertising with the intent of destroying or lessening competition; and

WHEREAS, such discriminatory practices as rebates and sales
at less than cost are often confined to one or more closely defined
locales with other dealers in the products of the refiner and distributor,
in the same general area, not receiving the competitive benefits af-
forded by such rebates and sales at less than cost, and actually being
placed at a competitive disadvantage thereby; and

WHEBEAS, it is generally known that such refiners and dis-
tributors often operate directly retail outlets thereby being in a position
to reduce prices of their products for an extended period thus forcing
independent dealers to operate at a loss or to discontinue business; and

WHEREAS, it appears that said major refiners and distributors
in many instances require independent dealers to enter into leases on
a short term basis, which leases operate to the disadvantage of such
independent dealers and promote monopolistic situations,

142 JOURNAL OF THE Mar. 21

NOW, THEREFORE,

Be it resolved by the Senate of the Commonwealth of Kentucky,
and the House of Representatives concurring therein:

Section 1. The Legislative Research Commission, in cooperation
with such other state agencies as the Governor shall direct, is hereby
authorized and directed to make a study of the business practices of
the major oil companies as same relate to retail dealers; to make a
study of the effect such practices have upon the retail dealers and
upon the consuming public.

Section 2. The Legislative Research Commission shall have
authority to obtain information and to receive cooperation and assist-
ance from public agencies in the Commonwealth, Every state agency,
on request, shall make available to the Legislative Research Commis-
sion such information, statistics and reports as are at the disposal of
such agency.

Section 3. The Legislative Research Commission shall prepare
and submit to the next regular session of the General Assembly a
report of its studies, containing specific recommendations for the
use and benefit of the General Assembly.

Orders of the Day

SB 1 taken from the Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call,.the vote was yeas 63—Anderson, Barnum, Bates,
Beshear, Billington, Blankenship, Bridgers, Burnley, Carter, Casey,
Conrad, Cornett ,Cottengim, Davidson, Davis, Day, Farmer, Fitz-
patrick, Flanery, Gay, Greene, Grigsby, Hahn, Harris, Hawkins, Hey-
burn, Highland, Hill, Hinkle, Holsclaw, C. S. Howard, Jennings, John-
son, Kubale, Lowman, Martin, McKinney, Morgan, Mullins, Murphy,
Newsom, Nunn, Ockerman, Parrish, Peace, Pollitte, Qualls, Ratcliffe,
Ray, J. B. Reed, R. Reid, Sr., Reynolds, Searcy, Sloan, Stith, Tanner,
Thompson, Tinsley, A. W. Wells, L. B. Wells, Wilson, Wirsch, Young.
Nays 3—Isler, Mackey, Saylor.

SB I was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved that the rules be suspended for
reading the Calendar. Agreed.

Calendar

SB 2 was taken from the Calendar and read at length for the
second time. Ordered placed in the Orders of the Day.

Representative Morgan moved to adjourn until 10:00 A.M., March
22nd. Agreed.

Mar. 22 HOUSE OF REPRESENTATIVES 148

THURSDAY, MARCH 22, 1956
TWELFTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend Fred T. Moffett of the First Baptist
Church, Frankfort.

The roll was called. All present except Breckinridge, Bridgers,
Buchanan, Bush, Casey, Caudill, Dunsil, Embry, Flanery, Grigsby,
Grundy, Gullette, Hill, Hislope, Durham W. Howard, Kubale, Lam-
bert, Lowman, Martin, McCallum, Murphy, Nunn, Nunnelley, Peace,
Qualls, Ray, Rayburn, John B. Reed, Reynolds, Thomas, Weintraub,
and Williamson, who were granted leaves of absence on motion of
Representative Morgan.

Report on Enrolled Bills

Committee on Enrollment reported that SB 1 had been examined
and found correctly enrolled. Said bill read at length, compared, and
signed in open session by the Speaker. Ordered delivered to the
Senate.

Senate Message

Senate message announcing passage of SB 3, SB 4, HR 3, and
HR 12. Ordered that SB 3 and SB 4 be referred.

Reading of the Journal for March 21, 1956, dispensed with and
the same approved on motion of Representative Isler.

Calendar

HR 8 was taken from the Calendar and read at length for the
second time. Ordered placed in Orders of the Day.

Recess
Representative Morgan moved that the House do now recess for
a Rules Committee Meeting. Agreed. At the appointed hour, the
Speaker resumed the Chair and called the House to order.
Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.

Report of Committee
Committee on Rules reported SB 3 and SB 4 with the expression
of opinion that the same should pass. Read at length for the first time
and ordered placed in the Calendar.

SB 3: AN ACT authorizing the execution, sale and delivery of one
hundred million dollars ($100,000,000) principal amount of Com-
monwealth of Kentucky general obligation bonds, the proceeds from
the sale of which will be used to match Federal Funds for the con-
struction of highways, bridges and tunnels in the Commonwealth of
Kentucky, and providing for the submission thereof to the voters at
the general election to be held on November 6, 1956.

144 JOURNAL OF THE Mar, 22

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Subject to the provisions of Sections 49 and 50 of the
Constitution of Kentucky, there is hereby contracted on behalf of the
Commonwealth a debt in the amount of one hundred million dollars
($100,000,000). It is hereby declared to be the intent of the General
Assembly in enacting this Act and contracting the aforesaid debt on
behalf of the Commonwealth to provide a method whereby the Com-
monwealth of Kentucky can issue bonds directly obligating the Com-
monwealth in an amount of one hundred million dollars ($100,000,000 )
for the purpose of providing funds to match Federal Funds allocated
to Kentucky for the construction or reconstruction of highways, tun-
nels and bridges within the Commonwealth of Kentucky, subject to
the approval of the people of the Commonwealth of Kentucky as
provided in Section 50 of the Constitution of Kentucky; such approval
or disapproval to be expressed at the general election to be held on
November 6, 1956.

Section 2. Bonds of the Commonwealth of Kentucky shall be
issued in the total amount of one hundred million dollars
($100,000,000). Said bonds shall be of the denomination of one hun-
dred dollars ($100), or such multiples thereof as the State Property
and Buildings Commission may determine; shall be engraved, litho-
graphed or printed, as said Commission shall determine; shall be
signed at the time of their respective issuance by the Governor then
in office, and at the same time attested by the Secretary of State then
in office, with the seal of the Commonwealth affixed. All of said bonds
shall bear interest at such rate, not exceeding three percent per
annum, as said Commission shall determine at the time of such issue.
All of said bonds shall bear date of January 1, 1957. The interest
thereon shall be payable semiannually January first and July first of
’ each year thereafter. There shall be attached to said bonds coupons
for such semiannual interest bearing the facsimile signature of the
Governor and the Treasurer of the Commonwealth, the last coupon on
each bond being due at the date of maturity of the bond to which it is
attached. Said bonds and coupons shall be payable in lawful money
of the United States of America at such place or places as the State
Property and Buildings Commission may determine. Said bonds, at the
request of the owners, may be registered as to principal and interest
with the Department of Finance of the Commonwealth of Kentucky
upon the payment of a registration fee of fifty cents on each one
thousand dollars principal amount of said bonds. All of said bonds
and the interest thereon shall be exempt from state, county and mu-
nicipal taxation. Save as in this Act provided, the form of said bonds,
and the method of registration shall be determined by the State Prop-
erty and Buildings Commission. The cost of engraving, lithographing
_ or printing said bonds shall be certified by the State Property and

Mar. 22 HOUSE OF REPRESENTATIVES 145

Buildings Commission to the Department of Finance for payment and
shall be paid out of the State Road Fund.

Section 3. Said bonds shall bear serial numbers beginning with
number one and shall mature on such dates, with such provisions as
to prior redemption including premiums therefor, as may be deter-
mined by the State Property and Buildings Commission, providing that
all of such bonds shall mature within thirty years from January 1, 1957.

Section 4. The bonds herein provided for shall be direct obli-
gations of the Commonwealth of Kentucky, and the full faith and
credit of the Commonwealth hereby is pledged for the payment of
said bonds and the interest thereon. In order to provide for the pay-
ment of the principal of all of said bonds at their maturity and the
interest thereon annually as same shall accrue, there shall be levied
and collected in each of the thirty years from January 1, 1957, to
January 1, 1987, taxes for the benefit of the State Road Fund in the
form of license, excise taxes and fees relating to registration, operation
and use of vehicles on public highways and excise taxes, use and license
taxes relating to gasoline and other motor fuels used upon the public
highways in Kentucky at rates not less than the rates now imposed
by law or so adjusted as to produce for the Road Fund not less than
the amount now derived from all of such taxes. All such funds derived
from such taxes hereby are appropriated to the extent necessary for
the payment of the principal and interest on said bonds. From the
funds derived from said taxes in each year, beginning January 1, 1957,
there shall be set aside and held inviolable for that purpose, a fund
sufficient to pay the principal and interest on said bonds in each year
as and when due until all of said bonds and the interest thereon shall
have been paid in full. In each year, after setting aside the funds here-
inabove provided, the remainder of the funds derived from such taxes
may be expended and used for the cost of administration, statutory
refunds and adjustment, payment of highway obligations, costs of
construction, reconstruction, right of ways, maintenance and repair
of public highways, tunnels and bridges and the expense of enforcing
state traffic and motor vehicle laws, provided that all the funds col-
lected under KRS Chapter 138 and required by KRS 188.220, 138.565
(3) and 188,660 (3) to be set aside by the Department of Highways
for the construction, reconstruction and maintenance of rural and
secondary roads shall be first set aside and used for such purposes.

Section 5. All of said bonds need not be sold at one time, but
may be advertised and sold in units of not less than five million dollars
principal amount as and when the money to be derived from the is-
suance and sale of said bonds may be needed. The State Property
and Buildings Commission shall determine the time when and the
principal amount of said bonds that shall be advertised and sold.

Section 6. Before any of said bonds shall be sold, said State

146 JOURNAL OF THE Mar. 22

Property and Buildings Commission shall advertise not less than once
in each of the four weeks preceding the day of sale in at least three
newspapers of general circulation in Kentucky and in some one or
more recognized financial journals published in the City of New York
for bids therefor, and all bids shall be in writing and sealed, and on
the day fixed therefor shall be publicly opened by the State Property
and Buildings Commission at a time and place designated in the ad-
vertisement for bids. None of said bonds shall be sold at less than par
and accrued interest, and each advertisement for bids shall so state.
Said bonds said be sold to the highest and best bidder. Said State
Property and Buildings Commission shall have the right to reject any
and all bids. Any premium and accrued interest received shall be de-
posited in the sinking fund provided by this Act for the payment of
said bonds and interest thereon. On the sale of said bonds, all matured
coupons shall be detached and destroyed by the State Property and
Buildings Commission and a record made of such destruction. The cost
incurred by the State Property and Buildings Commission in advertis-
ing for bids and in making the sale of said bonds shall be certified by
said Commission to the Department of Finance and shall be paid out
of the State Road Fund.

Section 7. The State Property and Buildings Commission shall
specify such terms for the bonds that are not inconsistent with the
provisions of this Act.

Section 8. The State Property and Buildings Commission may
invest any amounts received for the sinking fund provided in this
Act in interest-bearing obligations of the United States or the purchase
of the bonds authorized by this Act, or they may deposit said amounts
in any State or National Bank or Trust Company of Kentucky, but
each such deposit shall be adequately secured by a corporate surety
bond in some good and solvent corporate surety company authorized
to do business in Kentucky, or by the deposit of United States Govern-
ment bonds which are direct obligations of the United States of
America in an amount equal to each such deposit.

Section 9. The proceeds derived from the sale of the afore-
said bonds shall be held or invested by the State Property and Build-
ings Commission in the same manner and under the same restrictions
set forth in Section 8 hereof as to the Sinking Fund and shall be used
solely and only by the Department of Highways of the Commonwealth
of Kentucky to match Federal Funds allocated to Kentucky for the
construction and reconstruction of highways, tunnels and bridges
within the Commonwealth of Kentucky.

Section 10. This Act shall be submitted to the people at the
general election to be held on November 6, 1956, as provided in Sec-
tion 50 of the Constitution of Kentucky. It shall be the duty of the
Secretary of State to cause this Act to be published once a week for

Mar. 22 HOUSE OF REPRESENTATIVES 147

four consecutive weeks next preceding the week of the general elec-
tion to be held on November 6, 1956, in at least three newspapers
of general circulation published in the state, and the Secretary of
State shall also cause to be published at the same time and in the same
manner the fact that the indebtedness authorized by this Act shall be
submitted to the people for their approval or rejection at the general
election aforesaid. Each such publication shall bear the title, “Notice
of Election.” The Secretary of State shall cause to be included at the
foot of said publication the statement that the Act will be submitted
to the voters of the Commonwealth at said regular election to be held
on November 6, 1956. The form of the question to be placed upon the
ballot shall be: “Are you in favor of the Act of the General Assembly
known as Senate Bill No. 3, enacted by the Second Extraordinary
Session of the General Assembly of 1956, authorizing the Common-
wealth to issue and sell bonds of the principal amount not exceeding
one hundred million dollars ($100,000,000), to provide funds to match
Federal aid in the construction and reconstruction of highways, bridges
and tunnels in Kentucky?” It shall be the duty of the Secretary of
State, not less than forty days before the November election in 1956,
to certify to the county court clerk of each county the question herein
directed to be submitted, and it shall be the duty of the county court
clerks to have said question as certified by the Secretary of State in-
dicated on the ballot as herein provided. The votes ‘cast for and
against this Act shall be counted, canvassed and certified to the State
Board of Election Commissioners in the same manner as the votes
cast for any office elective by the voters of the state. In all other
particulars the election shall be conducted in the same manner as
other general elections are conducted. If it shall be found that a
majority of the votes cast on the question are in favor of this Act,
then all provisions of this Act other than those contained in this section
shall become operative on and including the first day of January,
1957. The result of the election, as soon as certified, shall be pro-
claimed by the Secretary of State by publication in three daily news-
papers of general circulation in this Commonwealth. The expenses
incurred by the Secretary of State in the publications herein provided
for shall be certified by the Secretary of State to the Department of
Finance and paid out of the State Road Fund.

Section 11. The word “year” as used in this Act means calendar
year, unless otherwise expressly stated.

Section 12. All acts and laws and parts of acts and laws in con-
flict herewith, to the extent of such conflict, hereby are repealed.

SB 4: AN ACT relating to roads.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

148 JOURNAL OF THE Mar. 22

Section 1. Section 177.330 of the Kentucky Revised Statutes is
amended to read as follows:

At least once in each calendar year the Department of Highways,
through a duly authorized representative, shall consult with
the fiscal courts of the various counties for the purpose of receiving
recommendations from said fiscal courts for the selection of secondary
and rural roads lying within said counties for construction, recon-
struction or maintenance, The Department of Highways shall give due
consideration to the recommendations of the various fiscal courts with
reference to the selection of secondary and rural roads for construction,
reconstruction or maintenance and shall, provided agreement is
reached, proceed to construct, reconstruct or maintain such roads as
are agreed upon in accordance with the provisions of Chapters 177 and
179 of the Kentucky Revised Statutes.

Where the construction of a secondary or rural road through an
incorporated town of the fifth or sixth class is necessary, as determined
by the Department of Highways, it shall not be necessary for the
Department of Highways to consult with the fiscal court of the coun
wherein the said town is situated and said road may be constructed,
reconstructed or maintained at the discretion of the Department of
Highways.

Section 2. Section 177.840 of the Kentucky Revised Statutes
is amended to read as follows:

If, within thirty days after receiving recommendations from any
fiscal court, the Department of Highways and the fiscal court shall
fail to agree on the selection of any secondary or rural roads for con-
struction, reconstruction or maintenance, the department may proceed
toward the construction, reconstruction or maintenance of any road,
lying within a county with which agreement has not been reached,
which, in its discretion, is essential to a system of secondary highways.
Secondary or rural road or roads, constructed, reconstructed or main-
tained in accordance with agreement between the affected county
and the department, or selected for construction, reconstruction or
maintenance by the department, at its discretion, without agreement
with the affected county, may become a part of the highway system
of the Commonwealth of Kentucky at the discretion of the Depart-
ment of Highways.

Section 8. Section 177.850 of the Kentucky Revised Statutes
is amended to read as follows:

The Department of Highways is authorized to establish standards
for the construction, reconstruction, maintenance and improvement
of secondary and rural roads in the Commonwealth of Kentucky; to
continue such studies, make such surveys, prepare such maps, employ
such personnel and obtain such equipment as may be necessary for the
establishment and maintenance of an integrated system of secondary
and rural roads in the Commonwealth of Kentucky.

Mar, 22 HOUSE OF REPRESENTATIVES 149

Section 4. Section 177.370 of the Kentucky Revised Statutes is
hereby repealed.
Report on Enrolled Bills
Committee on Enrollment reported that HR 3 had been examined
and found correctly enrolled. Said resolution read at length, compared,
and signed in open session by the Speaker. Ordered delivered to the
Senate.

HR 8 delivered, signed by the President of the Senate. Ordered
delivered to the Governor.

Introduction of Resolution
HR 18, by Representative Hilton; A JOINT RESOLUTION pro-
viding for study by the Department of Highways regarding the estab-
lishing of a highway atop the proposed Greenup Dam and possible

source of revenue to assist in financing same.

WHEREAS, the establishment of an atomic energy plant in south-
eastern Ohio and the expansion of industry in northeastern Kentucky
has brought about a substantial increase in population in that area;
and

WHEREAS, travel by the populace of the northeastern section of
the Commonweath of Kentucky, across the Ohio River, is restricted or
made inconvenient by the fact that there are a limited number of
bridges; and

WHEREAS, it appears desirable that additional means of access
to our sister states north of the Ohio River be provided; and

WHEREAS, the approximate cost of a highway bridge across the
Ohio River would range between eight and ten million dollars; and

WHEREAS, the expenditure of approximately two hundred
thousand dollars for additional supports to the proposed dam would
result in a savings to the Commonwealth of approximately seventy
percent; and

WHEREAS, it would appear that the need for such bridge will
become even greater in the near future,

NOW, THEREFORE,

Be it resolved by the General Assembly of the Commonwealth
of Kentucky:

That the Department of Highways immediately make a study to
determine the practicability, feasibility, utility and possibility of con-
structing a highway across the proposed Greenup Dam, and in the
event such highway appears feasible the Department of Highways is
urged to begin construction thereof as soon as practicable. That a

150 JOURNAL OF THE Mar. 22

further investigation be made into the possibility of obtaining federal
funds to assist in paying the cost of such project.
Representative Hilton moved adoption of HR 13. Adopted.

Orders of the Day

Representative Morgan moved that HB 2 be taken from the
Orders of the Day and placed on passage. Agreed.

Representative Morgan moved to amend HB 2 as follows:

Amend printed copy of HB 2, on page 4, section 7, line 4, by add-
ing the following sentence “The provisions of this section shall not
apply to privately owned and operated trailers used for the transpor-
tation of boats, luggage, personal effects or farm products.” Adopted.

Representative Morgan moved that HB 2 be amended as follows:

Amend printed copy of HB 2 on page 2, section 2, line 8, by de-
leting the word “registered” and insert in lieu thereof the phrase:
“which may be identified”. Adopted.

Representative Morgan moved to amend HB 2 as follows:

Amend printed copy of HB 2 on page 5, section 11, line 3, by
inserting the following: “Section lla. Trailers, semi-trailers and house-
trailers in transit between a manufacturing plant and dealer's place of
business; between a manufacturing plant and user’s place of residence;
or between a dealer’s place of business and user’s place of residence
and farm equipment pulled or towed by a motor vehicle not required
to be licensed under the provisions of Chapter 186 of the Kentucky
Revised Statutes shall be exempt from the provisions of this Act.”
Adopted.

Representative Ockerman moved to amend HB 2 as follows:
Amend printed copy of HB 2 on page 4, section 7, line 5, by

striking the figure “$9.50” and inserting in lieu thereof the figure
“$4.50”. Rejected.

HB 2 read at length as amended. Representative Morgan moved
the Previous Question. Agreed.

On roll call, the vote was yeas 66—Anderson, Barnum, Bates,
Baumgardner, Beshear, Billington, Blankenship, Blue, Breathitt, Bu-
chanan, Burnley, Carter, Casey, Conrad, Cottengim, Davidson, Davis,
Day, Farmer, Freeman, Greene, Griffin, Hadden, Hahn, Harris,
Hawkins, Heskamp, Heyburn, Highland, Hilton, Hinkle, Holsclaw,
C. S. Howard, Isler, Johnson, Kubale, Mackey, McCallum, McFadden,
McKinney, Melton, Miller, Moore, Morgan, Mullins, Newsom, Pollitte,
Ratcliffe, Ray, V. Reed, H. V. Reid, R. Reid, Sr., Reynolds, Saylor,
Searcy, Sloan, Stith, Tanner, Thompson, Tinsley, Walsh, Wathen, A.
W. Wells, Wilson, Wirsch, Young. Nays 2—Cornett, Ockerman.

HB 2 was passed and the title agreed to.

Representative Morgan moved that the vote by which HB 2 as
amended was passed be reconsidered and said motion be laid on the
table. Agreed.

Mar. 22 HOUSE OF REPRESENTATI{VES 151

Representative Morgan moved that HB 3 be taken from the
Orders of the Day and placed on passage. Agreed.

Representative Morgan moved to amend HB 8 as follows:

Amend printed copy of HB 8 on page 17, by adding thereto, im-
mediately following Section 19, the following which shall constitute
Section 20 of this Act: “Whereas, the Commonwealth of Kentucky is
losing substantial amounts of revenue under the existing laws of the
Commonwealth, an emergency is declared to exist and this Act shall
become effective upon its passage and approval by the Governor.”
Adopted.

Representative Morgan moved to amend HB 8 as follows:

Amend printed copy of HB 8 on page 16, section 16, lines 7 and
14, by deleting in line 7 the word “except” following the word “ve-
hicles” and before the word “semi-trailers” and inserting in lieu
thereof the word “including,” and by deleting in line 14 the word
“not” following the word “shall” and before the word “be.” Adopted.

HB 3 read at length as amended. Representative Morgan moved
the Previous Question. Agreed.

On roll call, the vote was yeas 58~Anderson, Barnum, Bates,
Beshear, Billington, Blankenship, Blue, Buchanan, Burnley, Carter,
Casey, Conrad, Cornett, Cottengim, Davidson, Davis, Day, Embry,
Everett, Farmer, Greene, Griffin, Hadden, Hahn, Harris, Hawkins,
Heskamp, Heyburn, Highland, Hilton, Hinkle, Holsclaw, C. S. Howard,
Isler, Johnson, Kubale, Mackey, McCallum, McFadden, Melton, Miller,
Moore, Morgan, Mullins, Newsom, Parrish, Ratcliffe, V. Reed, H. V.
Reid, Searcy, Sloan, Stith, Tanner, Thomas, Thompson, A. W. Wells,
Wirsch, Young. Nays 3—Ockerman, Reynolds, Walsh.

HB 3 was passed and the title agreed to.
_ Representative Morgan moved that the vote by which HB 3 was
passed be reconsidered and said motion be laid on the table. Agreed.
Representative Morgan moved to adjourn until 8:00 P.M., March
26th. Agreed.

152 JOURNAL OF THE Mar. 26

MONDAY, MARCH 26, 1956
FIFTEENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend John C. Chenault of the First Christian
Church, Frankfort.

The roll was called. All present except Anderson, Blue, Breathitt,
Bush, Carter, Caudill, Cottengim, Gullette, Hadden, Harris, Hilton,
Holsclaw, Durham W. Howard, McCallum, Melton, Nunn, Nunnelley,
Pollitte, Qualls, Reynolds, Saylor, Sloan, Tanner, Tinsley, Walsh,
Wathen, Weintraub, Mrs. Wilson, and Young, who were granted
leaves of absence on motion of Representative Morgan.

Reading of the Journal for March 22, 1956, dispensed with and
the same approved on motion of Representative Isler.

Calendar
SB 8 and SB 4 taken from the Calendar and read at length for
the second time. Ordered placed in Orders of the Day.

Orders of the Day

HR 8 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 67—Barnum, Bates, Beshear, Bil-
lington, Blankenship, Breathitt, Breckinridge, Bridgers, Burnley, Casey,
Conrad, Cornett, Davis, Day, Dunsil, Embry, Everett, Farmer, Flanery,
Freeman, Gay, Greene, Griffin, Grigsby, Grundy, Hahn, Hawkins,
Heskamp, Highland, Hill, Hinkle, Hislope, Holsclaw, C. S. Howard,
Isler, Jennings, Johnson, Kubale, Mackey, Martin, McCallum, McFad-
den, McKinney, Miller, Moore, Morgan, Mullins, Murphy, Newsom,
Ockerman, Parrish, Peace, Ratcliffe, Ray, Rayburn, J. B. Reed, V. Reed,
H. V. Reid, R. Reid, Sr., Searcy, Stith, Thomas, Walsh, A. W. Wells,
L. B. Wells, Williamson, Wirsch. Nays 0.

HR 8 was passed and the title agreed to.

Representative Morgan moved that the vote by which said resolu-
tion was passed be reconsidered and said motion be laid on the table.
Agreed.

SB 2 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed.

Representative Clyde S. Howard moved to amend SB 2 as fol-
lows:

Amend printed copy of SB 2 on page 1, section 1, lines 1 through
7 by deleting in its entirety and substituting in lieu thereof the follow-
ing: “Section 1. The Department of Highways shall at all times keep
all state right of ways free of the species of grass, sorghum halepense,

Mar. 26 HOUSE OF REPRESENTATIVES 153

commonly known as Johnson grass, and Cynodon dactylon, commonly
known as Bermuda grass, which are obnoxious weeds and are a threat
to the agriculture of the State. When any such grass is found growing
upon any state right of way, the department shall take steps to eradi-
cate such grass by the use of chemicals or any other effective means”.
Amendment was rejected for failure to receive a second.

SB 2 read at length the third time. Representative Morgan moved
the Previous Question. Agreed.

On roll call, the vote was yeas 56—Barnum, Bates, Billington,
Blankenship, Breathitt, Buchanan, Burnley, Casey, Conrad, Cornett,
Davidson, Davis, Day, Dunsil, Embry, Everett, Freeman, Gay, Greene,
Grundy, Hahn, Hawkins, Heskamp, Highland, Hinkle, Hislope, Hols-
claw, C. S. Howard, Isler, Johnson, Lowman, Mackey, McFadden,
McKinney, Miller, Moore, Morgan, Mullins, Murphy, Ockerman,
Parrish, Ratcliffe, Ray, Rayburn, V. Reed, H. V. Reid, R. Reid, Sr.,
Reynolds, Searcy, Stith, Thompson, Walsh, A. W. Wells, L. B. Wells,
Williamson, Wirsch. Nays 8—Breckinridge, Griffin, Hill, Lambert,
Martin, McCallum, Newsom, J. B. Reed.

SB 2 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved to adjourn until 1:00 P.M., March
27, 1956. Agreed.

154 JOURNAL OF THE Mar. 27

TUESDAY, MARCH 27, 1956
SIXTEENTH LEGISLATIVE DAY

The House was called to order by Speaker Pro Tem Charles W.
Burnley.

Prayer by the Reverend Robert J. Laughlin of the First Presby-
terian Church, Frankfort.

The roll was called. All present except Blue, Conrad, Farmer,
Grundy, Gullette, Harris, Hinkle, Isler, Lambert, Lowman, Murphy,
Nunn, Nunnelley, Saylor, Tanner, Tinsley, and Weintraub, who were
granted leaves of absence on motion of Representative Morgan.

Reading of the Journal for March 26, 1956, dispensed with and
the same approved on motion of Representative Gay.

Senate Message
Senate message announcing passage of HB 4, SR 8 and SR 10.
SR 8 and SR 10 read by Clerk.

Introduction of Resolutions
HR 14, by Representatives Holsclaw, Heyburn, Baumgardner,
Ray, Barnum, Walsh, Anderson, Miller, Murphy, Bridgers, and Farmer:
A CONCURRENT RESOLUTION commending the University of
Louisville upon the achievement of its basketball team in winning the
1956 National Invitation Tournament.

WHEREAS, the basketball team of the University of Louisville
compiled an outstanding record of 26 wins against only 8 losses during
the 1955-56 basketball season against many of the best teams in the
nation; and

WHEREAS, the said University of Louisville basketball team
has climaxed its season by emerging victorious in the 1956 National
Invitation Tournament at Madison Square Garden in New York City;
and

WHEREAS, in the finals of the National Invitation Tournament
the University of Louisville basketball team defeated, for the third
time this year, the University of Dayton basketball team which was
ranked No. 2 in the nation and favored to win the National Invitation
Tournament; and

WHEREAS, the University of Louisville in the finals of the
National Invitation Tournament swept to victory by a staggering score
of 93-80, amassing the highest winning score ever recorded in the
finals of the National Invitation Tournament; and

WHEREAS, Charlie Tyra, center on the Louisville basketball
team, was recognized as the “most valuable player” in the National
Invitation Tournament for his outstanding performance throughout
the tournament; and

Mar. 27 HOUSE OF REPRESENTATIVES 155

WHEREAS, the University of Louisville basketball team set a
new three-game record of 266 points in winning the National Invita-
tion Tournament; and

WHEREAS, by the combination of an outstanding season record
and the winning of the National Invitation Tournament, one of the
highest basketball honors in the world, the said University of Louis-
ville basketball team has brought additional honor and glory to the
Commonwealth of Kentucky and more firmly established the said
Commonwealth as the basketball capital of the world; and

WHEREAS, the gentlemanly and sportsman like conduct ex-
hibited by the individual members of the said University of Louisville
basketball team has reflected the highest credit upon the citizens of
the Commonwealth and its educational institutions;

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky, the Senate concurring therein:

Section 1. That the House of Representatives and the Senate of
the Commonwealth of Kentucky do hereby express their commendation
to the University of Louisville basketball team upon its achievement
in winning the 1956 National Invitation Tournament.

Section 2. That the Clerk of the House cause copies of this
Resolution to be presented to the President of the University of Louis-
ville, to the Dean of the University of Louisville, to the Coach and to
each member of the basketball team.

Representative Holsclaw moved adoption of HR 14. Adopted.

HR 15, by Representative Wirsch: A RESOLUTION memorializ-
ing the Congress of the United States to take or cause to be taken
such action as may be required to proceed with and complete the
proposed Falmouth Dam Project on the Licking River.

WHEREAS, the proposed Falmouth Dam Project would provide
valuable benefits to the Commonwealth of Kentucky in the way of
flood control and power development; and

WHEREAS, the project would result in creating a body of water
admirably suited to the development of a state park and accompanying
recreational facilities which are particularly needed in the northern
part of Kentucky and which would promote the general welfare of the
people of Kentucky,

NOW, THEREFORE,

Be it resolved by the General Assembly of the Commonwealth
of Kentucky:

Section 1. That the Congress of the United States is requested
and urged to take or cause to be taken such action as is required in

156 JOURNAL OF THE Mar. 27

order to proceed with and complete the proposed Falmouth Dam
Project on the Licking River.

Section 2. That the Clerk of the House of Representatives is
directed to send copies of this Resolution to each United States Senator
from Kentucky and to each Representative in Congress from Kentucky.

Representative Wirsch moved adoption of HR 15. Rejected.

Report on Enrolled Bills

Committee on Enrollment reported that HB 4 had been examined
and found correctly enrolled. Said bill read at length, compared, and
signed in open session by the Speaker Pro Tem. Ordered delivered to
the Senate.

HB 4 delivered, signed by the President of the Senate. Ordered
delivered to the Governor.

_ Introduction of Bills

HB 9, by Representative Sloan: AN ACT relating to motor ve-
hicles.

Orders of the Day

Representative Morgan moved that the House concur in SR 10.

SR 10: A JOINT RESOLUTION commending the University of
Louisville upon the achievement of its basketball team in winning
the 1956 National Invitational Tournament.

WHEREAS, the basketball team of the University of Louisville
has compiled an outstanding record in the 1955-1956 basketball season
against the better teams in the nation; and

WHEREAS, the said University of Louisville basketball team
has climaxed its season by emerging victorious in the 1956 National
Invitational Tournament at Madison Square Garden in New York
City; and

WHEREAS, by the combination of an enviable season record and
the winning of the National Invitational Tournament the said Univer-
sity of Louisville basketball team has brought additional honor and
glory to the Commonwealth of Kentucky and established the said
Commonwealth more firmly as the basketball capitol of the nation; and

WHEREAS, the gentlemanliness and sportsmanlike conduct ex-
hibited by individual members of the said University of Louisville
team has reflected the highest credit upon the citizens of the Com-
monwealth and its educational institutions;

NOW, THEREFORE,
Be it resolved by the General Assembly of the Commonwealth
of Kentucky:

Section 1. That the General Assembly of the Commonwealth of
Kentucky does hereby express its commendation to the University of

Mar. 27 HOUSE OF REPRESENTATIVES ‘157

Louisville basketball team upon its achievement of winning the 1956
National Invitational Basketball Tournament.

Section 2. That the Clerk of the Senate cause copies of this
resolution to be presented to the President of the University of Louis-
ville, the Dean of the University of Louisville, the coach of the basket-
ball team and to each member thereof.

SF 10 was adopted.
Representative Morgan moved that the House concur in SR 8.

SR 8: A CONCURRENT RESOLUTION authorizing and direct-
ing the Legislative Research Commission in conjunction with the
Department of Highways to make a study regarding the allocation of
funds for rural and secondary roads.

WHEREAS, the allocation of funds provided by KRS 138.220,
138.565(8) and 138.660(3) for the construction, reconstruction and
maintenance of rural and secondary roads is presently made pursuant
to rules and regulations of the Department of Highways, which follow
the allocation procedure set forth in KRS 179.410; and

WHEREAS, the 1948 session of the General Assembly by KRS
177.370 directed the Department of Highways to make recommenda-
tions to the 1950 General Assembly respecting a formula or method for
the allocation of the funds provided by KRS 188.220 between the
various counties of Kentucky, and such directive has not been com-
plied with,

NOW, THEREFORE,

Be it resolved by the Senate of the Commonwealth of Kentucky,
the House of Representatives concurring therein:

That the Legislative Research Commission in conjunction with
the Department of Highways is authorized and directed to study the
problem and shall make recommendations to the 1958 General Assem-
bly respecting a formula or method for the allocation of the funds pro-
vided by KRS 138.220, 138.565(3) and 188.660(3) between the various
counties of Kentucky, and shall make such other recommendations
and reports as shall be deemed necessary, or requested by the Gen-
eral Assembly, for the establishment of a system of secondary and
rural roads in the Commonwealth of Kentucky.

SR 8 was adopted.

SB 3 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed.

Representative Breckinridge moved to amend SB 8 as follows:

Amend printed copy of SB 3 on page 8, by adding a new section
to read as follows:

158 JOURNAL OF THE Mar. 27

Section 13. (1) To facilitate public understanding of the ob-
jectives and administration of the provisions of this Act; to effect all
possible economies and the maximum benefit to the highway system of
the Commonwealth; and, to enable the General Assembly to better
consider such supplementary legislation as development might indi-
cate, there is hereby created a joint committee of the General Assembly
to be composed of four members each of the Senate and the House of
Representatives, the membership of which shall be chosen by secret
ballot.

(2) Each member of the General Assembly shall, in voting for
the membership of his respective body to said committee, be entitled
to vote for four members. The four members of each legislative body
receiving the highest number of votes on the first ballot shall be
elected; provided, however, that in the event that those members
receiving the highest number of votes are all members of the same
political party, then and in that event the members of the political
party not represented, who received the highest number of votes for
members of his party, shall be substituted for the member receiving
fourth highest number of votes amongst those members of the other
party.

(3) The committee shall elect its own officers, is authorized and
empowered to employ accountants, attorneys, stenographic and clerical
assistants, and such other skilled assistance as it may deem expedient
to the discharge of its duties, and to purchase or otherwise acquire
necessary equipment and supplies. The committee shall, as a first
order of business, adopt rules governing its organization, meetings,
hearings and procedure, and shall have authority to reimburse its
members and employees for actual and necessary traveling expenses,
telephone and telegraph expenses, and similar expenses incurred in
the performance of its duties. It is further authorized and empowered
to conduct hearings at any place within the Commonwealth or else-
where, and to receive evidence by deposition, for which purpose it
may delegate any member or employee of the committee to conduct
the taking of the deposition within or without the State.

(4) The committee, or its duly authorized members or employees,
are hereby authorized, empowered and directed to fully and
thoroughly inquire into and investigate the affairs, activities and man-
agement of the Department of Highways and Finance, including the
conduct of all officers and employees thereof, and the conduct of any
and all persons having or who have had transactions, dealings or con-
tracts with either of said institutions, its officers or employees, and in
so doing shall have full and plenary powers to subpoena, demand the
presence of, and examine under oath such persons; to require any and
all persons so subpoenaed to so appear and to produce any papers,
books, documents, contracts, records or other data or written matter
deemed pertinent to the inquiry.

(5) The committee shall further have all of the powers and

Mar. 27 HOUSE OF REPRESENTATIVES 159

privileges and receive compensation as provided for sub-committees
of the Legislative Research Commission by the provisions of Chapter 7
of the Kentucky Revised Statutes.

Amendment to SB 3 was rejected.

SB 8 read at length the third time. Representative Morgan moved
the Previous Question. Agreed.

On roll call, the vote was yeas 77—Anderson, Barnum, Bates,
Baumgardner, Beshear, Billington, Blankenship, Breathitt, Breckin-
ridge, Buchanan, Burnley, Bush, Carter, Casey, Conrad, Cornett, Cot-
tengim, Davidson, Davis, Day, Dunsil, Embry, Everett, Flanery, Free-
man, Gay, Greene, Griffin, Grigsby, Hadden, Hahn, Hawkins, Hes-
kamp, Highland, Hill, Hilton, Holsclaw, C. S. Howard, D. W. Howard,
Jennings, Johnson, Kubale, Mackey, Martin, McCallum, Melton, Miller,
Moore, Morgan, Mullins, Newsom, Nunn, Ockerman, Parrish, Peace,
Pollitte, Qualls, Ratcliffe, Ray, Rayburn, J. B. Reed, V. Reed, H. V..
Reid, R. Reid, Sr., Reynolds, Searcy, Sloan, Stith, Thompson, Walsh,
Wathen, A. W. Wells, L. B. Wells, Williamson, Wilson, Wirsch, Young..
Nays 5—Caudill, Heyburn, McFadden, McKinney, Thomas.

SB 3 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

SB 4 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed.

Representative Ockerman moved to amend SB 4 as follows:

Amend printed copy of SB 4 on page 3, by adding a new Section
as follows:

“Section 5. Section 177.360 of the Kentucky Revised Statutes is
amended to read as follows: The funds provided under the provisions
of KRS 177.320 and 138.220 shall be allocated to the various counties
in the same manner as is provided by KRS 179.410. In making the
allocation for the fiscal year beginning July 1, 1956, and subsequent
years adjustments for-prior year or years credits or advancements to
the various counties, shall be made by the Department of Highways”.

Representative Ockerman requested a roll call on the amendment.

On roll call, the vote was yeas 35—Breathitt, Breckinridge, Bu-
chanan, Carter, Caudill, Cornett, Dunsil, Embry, Freeman, Gay.
Griffin, Hadden, Heskamp, Heyburn, Hislope, D. W. Howard, Jen-
nings, Lambert, Mackey, McFadden, McKinney, Moore, Mullins, .
Nunn, Ockerman, Peace, Pollitte, Ray, R. Reid, Sr., Reynolds, Searcy,
Sloan, Thomas, Williamson, Wirsch. Nays 41—Anderson, Baumgardner,

160 JOURNAL OF THE Mar. 27

Beshear, Billington, Blankenship, Burnley, Bush, Casey, Conrad, Cot-
tengim, Davidson, Davis, Day, Everett, Flanery, Grigsby, Hahn, Hill,
Hilton, Holsclaw, C. S. Howard, Johnson, Kubale, Martin, Melton,
Miller, Morgan, Newsom, Parrish, Qualls, Ratcliffe, Rayburn, J. B.
Reed, V. Reed, H. V. Reid, Stith, Thompson, Walsh, Wathen, Wilson,
Young.

Amendment was rejected.
Representative Ockerman moved to amend SB 4 as follows:

Amend printed copy of SB 4 on page 2, section 1, line 15 by strik-
ing the punctuation mark “.” immediately after the word “Statutes”
and adding the following: “as a part of the highway system of the
Commonwealth of Kentucky. The Department of Highways and said
fiscal courts may provide in the said agreement or in separate agree-
ments for the expenditure of any portion of the funds available to said
county under the provisions of KRS 177.220 through KRS 177.380 for
construction, reconstruction or maintenance of county roads to be
returned to the counties for maintenance and such roads so agreed
upon may be returned by the Department to the counties for main-
tenance”.

Said amendment was rejected.
Representative Ockerman moved to amend SB 4 as follows:

Amend printed copy of SB 4 on page 2, section 2, lines 10 through
17 by striking the words beginning with the word “Highways” on line
10 through the word “Highways” on line 17 and inserting in lieu thereof
the following: “highways or a system of rural roads in the Common-
wealth of Kentucky. Any secondary or rural roads selected for con-
struction, reconstruction or maintenance under this section shall be-
come a part of the highway system of the Commonwealth of Kentucky
and maintained by the Department of Highways as such”.

Said amendment was rejected.

Representative Ockerman moved to amend SB 4 as follows:

Amend printed copy of SB 4 on page 3, section 3, line 3 by striking
the words “is authorized to” and inserting in lieu thereof the word
“shall”.

Said amendment was rejected.
Representative Ockerman moved to amend SB 4 as follows:

Amend printed copy of SB 4 on page 3, section 3, line 6 by striking
the words “to continue” and inserting in lieu thereof the words “and is
authorized to make”.

Said amendment was rejected.

Mar. 27 HOUSE OF REPRESENTATIV&:S 161

SB 4 read at length the third time. Representative Morgan moved
the Previous Question. Agreed.

On roll call, the vote was yeas 48—Anderson, Bates, Baumgardner,
Beshear, Billington, Blankenship, Burnley, Bush, Casey, Conrad, Cot-
tengim, Davidson, Davis, Day, Everett, Griffin, Grigsby, Hadden,
Hahn, Highland, Hill, Hilton, Holsclaw, C. S. Howard, Johnson, Ku-
bale, McCallum, McFadden, Melton, Morgan, Mullins, Newsom, Pol-
litte, Qualls, Ratcliffe, Rayburn, J. B. Reed, V. Reed, H. V. Reid,
Reynolds, Stith, Thompson, Walsh, Wathen, A. W. Wells, Wilson,
Wirsch, Young. Nays 22—Breathitt, Breckinridge, Buchanan, Caudill,
Flanery, Hawkins, Heyburn, Hislope, D. W. Howard, Lambert,
Mackey, Martin, McKinney, Moore, Ockerman, Parrish, Peace, Ray,
R. Reid, Sr., Searcy, Thomas, Williamson.

SB 4 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Anderson moved the rules be suspended for the
purpose of introducing a Resolution. Agreed.

HR 16, by Representatives Anderson, Heyburn, Walsh, Miller,
Barnum, Baumgardner, Ray, Qualls, Holsclaw, and Bridgers: A CON-
CURRENT RESOLUTION commending Central High School of
Louisville upon the achievement of its basketball team in winning the
1956 national Negro high school championship.

WHEREAS, the basketball team of Central High School of Louis-
ville finished the 1955-56 basketball season undefeated after having
played the outstanding Negro teams in the nation; and

WHEREAS, the said Central High School basketball team has
climaxed its season by winning its second straight national Negro high
school basketball crown by defeating Douglass of Lexington in an
all-Kentucky final game at Nashville, Tennessee; and

WHEREAS, the basketball team of Central High School took
permanent possession of the Bernard J. Sheil Trophy, inasmuch as this
years victory was Central’s third championship since the trophy was
donated in 1949; and

WHEREAS, Central High School of Louisville and University of
Louisville, in one evening, returned two national championships to the
City of Louisville; and

WHEREAS, by the combination of an undefeated regular season
record and the winning of the national Negro high school basketball
championship, the Central High School team has established itself as
the outstanding Negro high school basketball team in the nation and
brought further honor and glory to the Commonwealth of Kentucky as
the basketball capital of the nation; and

162 JOURNAL OF THE Mar. 27

WHEREAS, the accomplishments and the sportsman like conduct
of the individual members of the said Central High School of Ken-
tucky team has reflécted the highest credit upon the citizens of the
Commonwealth and its educational institutions;

NOW, THEREFORE,

Be it Resolved by the House of Representatives of the Common-
wealth of Kentucky, the Senate concurring therein:

Section 1. That the House of Representatives and Senate of the
Commonwealth of Kentucky do hereby express their commendation
to the basketball team of Central High School of Louisville upon its
undefeated regular season play and its winning of the national Negro
high school basketball championship and permanent possession of the
Bernard J. Sheil Trophy.

Section 2. That the Clerk of the House of Representatives cause
copies of this Resolution to be presented to Dr. Atwood Wilson, Prin-
cipal of Central High School, to Coach W. L. Kean and to each member
of the victorious Central High School basketball team. :

‘Representative Anderson moved adoption of HR 16. Adopted.

Representative Morgan moved that the House adjourn until 1:00
P.M., March 28, 1956. Agreed.

Mar. 28 HOUSE OF REPRESENTATIVES 163

WEDNESDAY, MARCH 28, 1956
SEVENTEENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.
Prayer by the Reverend John C. Chenault of the First Christian
Church, Frankfort.

The roll was called. All present except Anderson, Billington,
Bridgers, Caudill, Embry, Freeman, Grigsby, Gullette, Harris, Hey-
burn, Hill, Jennings, Kubale, Lambert, Lowman, McFadden, Murphy,
Nunnelley, Ray, Rayburn, Walsh, Wathen, and Weintraub, who were
granted leaves of absence on motion of Representative Morgan.

Reading of the Journal for March 27, 1956, dispensed with and
the same approved on motion of Representative Isler. -

Report on Enrolled Bills
Committee on Enrollment reported that SB 2, SB 3, and SB 4
had been examined and found correctly enrolled. Said bills read at
length, compared, and signed in open session by the Speaker. Ordered
delivered to the Senate. -

Recess
Representative Morgan moved that the House do now recess for
20 minutes. Agreed. At the appointed hour, the Speaker resumed the
Chair and called the House to order.

Senate Message -

Senate Message announcing passage of HB 1 with amendment,
HB 2 with.amendment, HB 3 with amendment, HB 8, and HR 5 with
title amendment.

_ Representative Morgan moved that the House concur in the fol-
lowing Senate amendment to HR 5:

Amend title of HR 5 so it will read as the “Day-Ruh Resolution”.
HR 5 with title amendment adopted.

Representative Morgan moved that the House concur in the
following Senate amendment to HB 2:

Amend printed copy of HB 2 on page 4, section 7, line 4 by delet-
ing the word “section” and substituting in lieu thereof the word
“act”. Adopted.

Representative Morgan moved that the House concur in the fol-
lowing Senate amendment to HB 2: :

-Amend printed copy of HB 2 on page 4, section 7, line 6 by delet-
ing line 6 in its entirety and substituting in lieu thereof the following:
“luggage, personal effects, farm products, farm supplies or farm
equipment.” Adopted.

Representative Morgan moved the Previous Question. Agreed,

On roll call, the vote was yeas 65—Barnum, Bates, Baumgardner,
Beshear, Billington, Blankenship, Blue, Breathitt, Breckinridge, Burn-

164 JOURNAL OF THE Mar. 28

ley, Bush, Carter, Casey, Conrad, Cottengim, Davis, Day, Dunsil,
Everett, Farmer, Flanery, Greene, Griffin, Grundy, Hawkins, Heskamp,
Highland, Hilton, Hinkle, Hislope, Holsclaw, C. S. Howard, Isler,
Johnson, Mackey, Martin, McCallum, McKinney, Melton, Miller,
Moore, Morgan, Mullins, Nunn, Parrish, Pollitte, Qualls, Ratcliffe,
J. B. Reed, V. Reed, H. V. Reid, R. Reid, Sr., Reynolds, Saylor, Searcy,
Sloan, Stith, Tanner, Thompson, Tinsley, A. W. Wells, L. B. Wells,
Wilson, Wirsch, Young. Nays 0.

HB 2 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Report on Enrolled Bills
Committee on Enrollment reported that HB 8 had been examined
and found correctly enrolled. Said bill read at length, compared, and
signed in open session by the Speaker. Ordered delivered to the
Senate.

HB 8 delivered, signed by the President of the Senate. Ordered
delivered to the Governor.

Senate Message
Senate message announcing passage of HR 8, HR 18, and HR 14.
Representative Morgan moved that the House concur in the fol-
lowing Senate amendment to HB 1:

Amend printed copy of HB 1 on page 8, by adding immediately
after Section 4 and before Section 5 the following, which shall con-
stitute Section 4A:

“Section 4A. Section 138.470 of the Kentucky Revised Statutes is
amended to read as follows:

There is expressly exempted from the tax imposed by KRS
138.460:

(1) Motor vehicles sold to the United States, to this state, to
any City or other political subdivision of this state, or to any charitable,
religious or educational institution of this state.

(2) Used motor vehicles registered or licensed in this state during
the same or immediately preceding license period.

(3) Motor vehicles owned by a person bona fide domiciled in
another state and used and licensed in that state by the owner during
the same or immediately preceding license period.

(4) Motor vehicles of a common carrier, U-Drive-It or contract
carrier upon which vehicle the tax imposed by KRS 281.810, 281.813,
or 281.815, and a franchise tax, is paid by the owner. The owner shall
be required to exhibit the tax receipt for such taxes for the same or
immediately preceding license period.”

Mar. 28 HOUSE OF REPRESENTATIVES 165

HB 1 with amendment read at length. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 67—Barnum, Bates, Baumgardner,
Beshear, Billington, Blankenship, Blue, Breathitt, Buchanan, Burnley,
Bush, Carter, Casey, Conrad, Cornett, Cottengim, Davidson, Davis,
Day, Dunsil, Embry, Everett, Farmer, Flanery, Greene, Griffin,
Grundy, Hawkins, Heskamp, a aie Hilton, Hinkle, Holsclaw,
C. S. Howard, Isler, Johnson, Mackey, Martin, McCallum, McKinney,
Melton, Miller, Moore, Mullins, Newsom, Nunn, Parrish, Pollitte,
Qualls, Ratcliffe, J. B. Reed, V. Reed, H. V. Reid, R. Reid, Sr., Rey-
nolds, Saylor, Searcy, Sloan, Stith, Tanner, Thompson, Tinsley, A. W.
Wells, L. B. Wells, Wilson, Wirsch, Young. Nays 0.

HB 1 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved that the House concur in the fol-
lowing Senate amendment to HB 3:

Amend printed copy of HB 3 on page 16, section 16, line 7, by
deleting the word “including” and substituting in lieu thereof the
word “except”. Rejected.

Representative Morgan moved the Clerk of the House inform the
Senate that the House refuses to concur in amendment, and that the
Senate rescind their action. Agreed.

Representative Morgan moved the House be at ease until a report
is received on the Senate’s action on rejected amendment to HB 3.

At the appointed hour, the Speaker resumed the Chair and called
the House to order.

The Senate reported that they refuse to recede from their amend-
ments. The Speaker appointed Representative Burnley, Bates, and
Holsclaw as a Committee to confer with a like Committee from the
Senate to seek an agreement.

Representative Morgan moved the House to be at ease for a
Joint Committee Meeting of House and Senate members to reach an
agreement on amendment to HB 38. Agreed.

At the appointed hour, the Speaker resumed the Chair and called
the House to order.

Report on Enrolled Bills
Committee on Enrollment reported that HB 1 and HB 2 had been
examined and found correctly enrolled. Said bills read at length, com-
pared, and signed in open session by the Speaker. Ordered delivered
to the Senate.
HB 1 and HB 2 delivered, signed by the President of the Senate.
Ordered delivered to the Governor.

Senate Message
Senate message announcing passage of HR 16.

166 JOURNAL OF THE Mar. 28

Representative Morgan moved the House be at ease for a Joint
Committee Meeting of House and Senate members to reach an agree-
ment on HB 3 amendment. Agreed.

At the appointed hour, the Speaker resumed the Chair and called
the House to order.

Senate message announcing passage of HB 3; and SR 12; SR 12
read by Clerk. ; .

Representative Burnley reported that the Joint Conference Com-
mittee on HB 3 had reached an agreement.

Representative Morgan moved that the report of the Joint Con-
ference Committee on HB 8 be accepted and said Committee be dis-
missed. Agreed.

Representative Morgan moved that the vote by which Senate
Amendment 1 to HB 8 was defeated be reconsidered. Agreed.

Representative Morgan moved that the House concur in the fol-
lowing Senate amendment to HB 3:

Amend printed copy of HB 8 on page 16, section 16, line 7, by
deleting the word “including” and substituting in lieu thereof the
word “except”. Adopted.

Representative Morgan moved that the House concur in the fol-
lowing Senate amendment to HB 3:

Amend printed copy of HB 3 on page 16, section 16, line 14, by
deleting line 14 in its entirety and substituting in lieu thereof the fol-
lowing: “or semi-trailers shall not be included in the term’. Adopted.
_ Representative Morgan moved that the House concur in the
following Senate amendment to HB 3:

Amend printed copy of HB 3 on page 16, section 16, line 15, by
adding a new section immediately following line 15 to be known as
Section 16 (a) as follows: “Section 16 (a). Carriers and Motor Carriers
engaged in the transporting and delivery of Motor Vehicles, including
trailers and semi-trailers, by means of the full mount or truckaway
methods on trailers or semi-trailers, or by towing the transported trailer
or semi-trailer with a power unit, shall, on or before January 1, of each
year, and as a condition precedent to the use of the highways, pay to
the Department of Motor Transportation for the privilege of using
the highways an annual excise tax on each motor vehicle so used at
the rate of one-half of the scale of taxes imposed by KRS 281.810 (1)
which taxes shall be in lieu of all other Motor Vehicle taxes except
those imposed by KRS 186.050”. Adopted.

~ Representative Morgan moved the Previous Question. Agreed.

_ On roll call, the vote was yeas 58—Bates, Baumgardner, Beshear,
Billington, Blankenship, Buchanan, Burnley, Bush, Carter, Casey,
Conrad, Cottengim, Davidson, Davis, Day, Dunsil, Embry, Everett,
Farmer, Fitzpatrick, Flanery, Greene, Griffin, Grundy, Hawkins, Hes-
kamp, Hilton, Hislope, Holsclaw, C. $. Howard, Isler, Johnson, Martin,
McCallum, McKinney, Melton,~ Miller, Morgan, Mullins, Newsom,
Nunn, Pollitte, Qualls, J. B. Reed, V. Reed, H. V. Reid, Reynolds,

Mar. 28 HOUSE OF REPRESENTATIVES 167

Searcy, Sloan, Stith, Thompson, L. B. Wells, Wirsch. Nays 3—Breckin-
ridge, Hinkle, Ockerman.
HB 3 with amendments was passed and the title agreed to.
Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Committee to Wait on Governor

Representative Morgan moved that the Speaker appoint a Com-
mittee to join a similar Committee from the Senate to wait upon the
Governor to notify him that the business of the House had been con-
cluded and to inquire if he has further business to communicate.
Agreed.

The Speaker appointed the following committee: Representatives
Wirsch, Isler, Burnley, Thompson, and Hilton.

Report on Enrolled Bills

Committee on Enrollment reported that HB 3 with amendments
had been examined and found correctly enrolled. Said bill read at
length, compared, and signed in open session by the Speaker. Ordered
delivered to the Senate.

HB 8 with amendments delivered, signed by the President of the
Senate. Ordered delivered to the Governor.

Representative Burnley, on behalf of the Committee, reported that
the Governor had been informed of the message from the House and
that the Governor consented to the adjournment of this Extraordinary
Session. The Governor instructed the Committee to notify the members
of his call for the Third Extraordinary Session, and to deliver the
official proclamation calling for such Third Extraordinary Session.

Representative Morgan moved that the House concur in SR 12.

SR 12: A CONCURRENT RESOLUTION providing for sine die
adjournment of the Second Extraordinary Session of the General As-
sembly, 1956.

Be it resolved by the Senate of the Comomnwealth of Kentucky,
the House of Representatives concurring therein:

That when the Senate and House of Representatives adjourn on
March 28, 1956, they do adjourn sine die.
SR 12 was adopted.
Representative Young moved that the House adjourn sine die.
Agreed.
The Journal of the House has been read, compared and approved.
The House adjourned sine die.
APPROVED:
(Signed) THOMAS P. FITZPATRICK, Speaker
ATTEST:
(Signed) JAMES C. CUBBAGE, Chief Clerk

JOURNAL

OF THE
House of Representatives

OF THE

COMMONWEALTH OF KENTUCKY

THIRD EXTRAORDINARY SESSION OF 1956

Held in the State Capitol in the Capital City of Kentucky, at
Frankfort, in the Year of Our Lord 1956 and
in the One Hundred and Sixty-Fourth
Year of the Commonwealth

Begun on the Twenty-ninth Day of March, 1956, and Adjourned
Sine Die on the Sixth Day of April, 1956

JOURNAL OF THE SESSION
OF THE
HOUSE OF REPRESENTATIVES
OF THE COMMONWEALTH OF KENTUCKY

THIRD EXTRAORDINARY SESSION OF 1956

THURSDAY, MARCH 29, 1956
FIRST LEGISLATIVE DAY

At an Extraordinary Session of the General Assembly of the Com-
monwealth of Kentucky, held at the Capitol in the City of F rankfort,
and begun on March 29, 1956, and in the one hundred and sixty-fourth
year of the Commonwealth, in compliance with a proclamation issued
by the Governor of the Commonwealth, the House of Representatives
was called to order by the Honorable Thomas P. Fitzpatrick, Speaker
of the House of Representatives.

Prayer by the Reverend E. W. Baxter of the Episcopal Church,
Frankfort.

The roll was called. All present except Anderson, Barnum, Bates,
Billington, Blue, Breckinridge, Buchanan, Caudill, Cornett, Embry,
Farmer, Gay, Grigsby, Grundy, Gullette, Harris, Hill, Clyde S. Howard,
Durham W. Howard, Lambert, Lowman, Martin, McFadden, Melton,
Moore, Nunnelley, Ockerman, Peace, Qualls, Rayburn, John B. Reed,
Vernon Reed, Reynolds, Saylor, Sloan, Stith, Tanner, Thomas, Tinsley,
Wathen, Weintraub, and Williamson, who were granted leaves of
absence on motion of Representative Morgan.

' The Clerk read the following proclamation:

I, THELMA L. STOVALL, Secretary of State for the Common-
wealth of Kentucky, do certify that the foregoing writing has been
carefully compared by me with the original record thereof, now in
my official custody as Secretary of State and remaining on file in my
office, and found to be a true and correct copy of the Proclamation
by the Governor of the Commonwealth of Kentucky, proclaiming
the convening of the General Assembly of Kentucky in Extraordinary
Session at the seat of government at Frankfort, Kentucky, at 11:00
o'clock A.M., on Thursday, March 29th, 1956.

IN WITNESS WHEREOF, I have hereunto
set my hand and affixed my official seal.
Done at Frankfort this 29th day of March, 1956.
(Signed) THELMA L. STOVALL
- Secretary of State, Commonwealth of Kentucky
(SEAL) |

172 JOURNAL OF THE Mar. 29

PROCLAMATION BY THE GOVERNOR OF THE
COMMONWEALTH OF KENTUCKY

TO ALL TO WHOM THESE PRESENTS SHALL COME:

WHEREAS, the budgetary needs of the government have not yet
been fully determined by the General Assembly of the
Commonwealth of Kentucky; and

WHEREAS, such budgetary needs must be determined before the
amount of revenue to meet such needs can be ascertained;

NOW, THEREFORE, in order to determine the budgetary needs of
government, and according to the power vested in me by
the Constitution of Kentucky to convene the General
Assembly into Extraordinary Session, I do hereby issue
this, my proclamation, convening the General Assembly
of Kentucky in Extraordinary Session at the seat of
government at Frankfort, Kentucky at 11:00 o’clock AM,
on Thursday, March 29, 1956, for the sole purpose of
considering the following subject:

(1) To make appropriations for the support of gov-
ernment and thereby fix the budgetary requirements of
the government of the Commonwealth of Kentucky.

You will, therefore, in accordance with this procla-
mation, assemble in Extraordinary Session at the seat
of government at Frankfort, Kentucky, on the day and
date above written, to consider the subject herein men-
tioned and only said subject.

Done at Frankfort, Kentucky this 28th day of
March in the year of our Lord, one thousand
nine hundred and fifty-six, and in the year of
the Commonwealth, the one hundred and sixty-
fourth.

(Signed) A. B. CHANDLER, Governor

(SEAL)
(Signed) Thelma L. Stovall
Secretary of State

Introduction of Resolutions
HR 1, by Representative Morgan: A RESOLUTION adopting
rules to govern the Third Extraordinary Session of the 1956 General
Assembly.

Be it resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky:

That the rules of the House of Representatives of the 1956 Regu-
lar Session of the General Assembly be adopted as the Rules of the

Mar. 29 HOUSE OF REPRESENTATIVES 173

House of Representatives of the Extraordinary Session of the General
Assembly convened on March 29, 1956.
Representative Morgan moved adoption of HR 1. Adopted.

HR 2, by Representative Morgan: A RESOLUTION notifying the
Senate and the Governor that the House of Representatives is organ-
ized.

Be it resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky:

That the Speaker of the House of Representatives be authorized
and directed to appoint a committee of seven members to notify the
Senate that the House of Representatives is organized and ready for
business, and that this committee meet with a like committee to be
appointed by the President of the Senate, and that said joint committee
then call on the Governor of the Commonwealth of Kentucky to notify
him that this General Assembly is duly organized and ready to receive
sus message that he may desire to deliver, his fixing the time and

ace.
: Representative Morgan moved adoption of HR 2. Adopted.

Appointment of Committee
The Speaker appointed the following Committee pursuant to
HR 2: Representatives Lynn B. Wells, Breathitt, Thompson, Newsom,
Dunsil, Miller, and Heskamp.

Joint Session

The Committee appointed to wait upon the Governor reported
that the Governor was ready to address a Joint Session of the.General
Assembly.

The Senate entered upon the floor of the House and the Honorable
Harry Lee Waterfield, Lieutenant-Governor and President of the
Senate, assumed the Chair and called the Joint Session to order.

Prayer by the Reverend E. W. Baxter of the Episcopal Church,
Frankfort.

Representative Morgan moved that the roll call be dispensed with.
Agreed.

- The Committee appointed to wait upon the Governor appeared
with His Excellency, Albert B. Chandler, Governor of the Common-
wealth of Kentucky, who took his place at the Clerk’s desk.

The Governor addressed the General Assembly as follows:

ADDRESS OF GOVERNOR A. B. CHANDLER TO THE THIRD
EXTRAORDINARY SESSION OF THE GENERAL ASSEMBLY
MARCH 29, 1956

Governor Waterfield, Mr. Speaker Fitzpatrick, Members of the Gen-
eral Assembly:

I want you to know how grateful I am for your patience and
consideration looking toward implementing the program which the

174 JOURNAL OF THE Mar. 29

people of Kentucky endorsed last year. Especially do I value your
cooperative spirit in permitting the budget deadline to be changed
thereby affording me an opportunity to submit a comprehensive
well-thought-out plan for the operation of state government during the
coming biennium. I hope you will agree that the total appropriation
proposals I am presenting constitute a good ae Na expenditure
program. I hope too that, as you examine the budget document, you
will consider it an over-all plan and will avoid viewing any expenditure
as an isolated item.

More than three weeks ago, I directed the Commissioner of Fi-
nance to have ready on April 2 the budget document and the draft of
the general appropriation bill. That plan will be carried out. In order
that you may have the best possible chance to consider the total pro-
gram previous to a review of the specific details, I am taking this
opportunity of presenting the highlights of the recommendations
which I shall submit in more detail on Monday. :

- . The basic policy that I recommend is one of progressive economy.
It centers special stress on the education of Kentucky’s young beeps

In this message, I shall outline the important changes in policy
in such a way that you may be aware of the approach which I am
proposing and my reasons for this. Let me consider first the proposed
program of education, which looks toward a fuller life for our young.
people. An investment in our young Kentuckians now will prevent
expenditures in future years because of dependency. ;

Education is expensive. More than half of all local taxes are
spent for local public schools. In addition, the state government in
1954 distributed nearly 32,000,000 dollars in state aid to education.
Nevertheless, the people of this Commonwealth decided that even
that amount was not enough. You, as the people’s representatives,
enacted the school foundation program. To carry out my campaign
promise. to finance that program fully, I am recommending to you a.
general fund appropriation of over 54 million dollars for the first year
and over 57 million dollars for the second year of the biennium. The
increases over this year’s expenditures are 19% million and 22% million
dollars respectively. Forty-seven percent of the general fund budget.
will be devoted to the support of our common schools through the
foundation program.

Immediately after my inauguration, I instructed our budget people
to review with the education folks the estimates for full implementation
of the foundation program. After much consultation and hard work
the. Departments of Finance and Education agreed completely that
the figures which I am presenting represent full financing of the
program, even though the amount is better than 8 million dollars
below previously published estimates for the biennium.

The proposed plan means that, for the first time in our history,
Pane fathers and mothers can expect for every child a fair chance
at an education, that our teachers can get a decent wage and an in-

Mar. 29 HOUSE OF REPRESENTATIVES 175

centive to better their qualifications, that school transportation will
be reasonably safe, and that school buildings will begin to meet modern
standards.

For the support of the teachers’ retirement system during the next
two years, I recommend $8,356,705. The appropriation during the
current biennium was $3,822,000, or less than half that amount. The
increase is due primarily to the higher teachers’ salaries that result from
full implementation of the foundation program and to an advance in
the average age of our teachers. This also represents the fulfillment of
my pledge to finance fully the retirement system including the Com-
monwealth’s obligation for “prior service.” Taken together the fully
financed foundation program and the fully financed teachers’ retire-
ment system will make teaching in Kentucky a far more attractive
profession than it has ever been before. We will be better able to hold
the fine teachers we have and to attract additional young people to
the task of educating our children.

- My proposals for vocational education mean increased emphasis
on all of the present programs and, in addition, the initiation of certain
new programs. One of the new undertakings is a program of vocational
guidance in our high schools. An economic development plan for rural
areas is to be carried out in cooperation with the Agricultural Market-
ing Service, the Farm Credit Administration, the Agricultural Exten-
sion Service, and numerous other public agencies. Vocational instruc-
tion of adults in trades and industries, agriculture, and home economics
under this plan will cost $50,000 a year and will be aimed at assisting
the economically depressed areas of the state to “pull themselves up
by their own bootstraps.” In addition to these new programs, funds
are recommended for the training of vocational teachers and for
staffing new facilities at our vocational schools.

Another phase of the proposed budget, for the first time in recent
years, would provide a sufficient appropriation to enable Kentucky to
receive the maximum support available from the federal government's
contribution of about two dollars for one state dollar for vocational
rehabilitation. This will provide increases for counseling services and
medical and educational assistance to the physically or mentally dis-
abled.

The state program for handicapped children, such as those af-
flicted with emotional disturbances and with cerebral palsy, has had
my careful consideration; and I am proposing support of this work
through established agencies. Conference with administrators con-
vinces me that, before our commitments in this area are much en-
larged, we need to articulate the parts of our present program and
to plan gradual and economical enlargements if they are justified.
You may wish to ask that the Legislative Research Commission explore
the programming problem on a modest scale. Meantime, the adminis-
tration will assure interdepartmental consultation. If it is found to be

176 JOURNAL OF THE Mar. 29

justified, I am ready, with your help, to make emergency grants for
further support of the rehabilitation of unfortunate children.

While most of us are keenly aware of the needs for an adequate
program for elementary and secondary education, all too few of us
show equal concern for higher education. I believe that my budget
recommendations will put me on record as a strong supporter of a
foundation program for higher education as well as for the common
school system.

The budget that I submit to you is based on a formula which
assures fair treatment to all of our five state colleges. The formula was
developed jointly by the college presidents and the Department of
Finance. The recommended appropriations will take care of the in-
creased enrollments, which are already setting records, and will allow
salary adjustments to meet minimum standards. Increases in the five
colleges other than the University amount to $777,775 the first year
of the biennium and $1,124,260 the second year, or a total of $1,902,035
for the biennium.

An increase of $1,874,150 is proposed in the budget for the Divi-
sion of Colleges in the University of Kentucky to finance increased en-
rollments and salary adjustments. For the Agricultural Experiment
Station I include an increase of $123,400 each year for operating costs.
After the University estimates had been made and agreed upon with
University officials, our Kentucky farmers will be happy to learn that
dairymen of the state convinced us that we should make a further
provision for the purchase of $100,000 worth of dairying processing
equipment for the University in the fiscal year 1956-57. I recommend
an increase of $144,650 per year in the extension division budget for
paying county agents and supporting related activities.

I am proud to present another aspect of the recommended support
for higher education. I refer to the medical education plan which we
must implement. It really is more than an education program. In
fact, it is a major phase of a basic long-range plan for the protection
of the health of our Kentucky people. There are three distinct areas of
emphasis. First, we must build a medical school at the University of
Kentucky. The construction should proceed at such a pace that the
first class can start in September, 1959. Second, we must increase
support of the medical school at the University of Louisville. Third,
we must provide increased appropriation for the rural medical scholar-
ship fund.

Large sections of Kentucky are in such dire need of doctors as to
be classified as critical. Many of the state’s children cannot expect
medical care even in emergency cases. The program which I recom-
mend for medical education is designed to provide opportunities for
Kentucky students who want a medical education and for Kentucky
citizens who need medical care.

When proposed general fund appropriations for the school founda-
tion program, the teachers’ retirement system, the University and the

Mar. 29 HOUSE OF REPRESENTATIVES 177

five colleges, including the university medical school, and the rest of
our educational system are added together, they constitute nearly 62
per cent of the general fund total. The total for the biennium amounts
to $153,427,830.

Emphasis on education does not mean neglect of health, welfare,
mental health, and agriculture. On the contrary, I recommend progres-
sive programs in all these areas.

In the budget plan which I submit to you, I propose the largest
increase which the mental health program has ever received — from
$10,225,000 during the present biennium to $13,986,400 during the
1956-58 biennium, a boost of $3,761,400. I was impressed with the
mental health advances in Kansas which Dr. Menninger described to
us some weeks ago. Although that state began its emphasis on modern
treatment, rather than mere custody, of the mentally ill long after I
initiated such a plan in Kentucky, Kansas has outstripped us by long
odds during the subsequent years. Indeed, our mental health pro-
grams fall far short of those of our neighbors. My budget proposal for
the Department of Mental Health is based primarily on plans for
stepping up the treatment, rather than mere custody, of mental pa-
tients generally. Provision is also made for the Department of Mental
Health to equalize staffs at the several institutions so that doctors,
psychiatrists, psychologists, and other professional and_ technical
people, may be provided on the same basis for every hospital. For
the first time we would provide for constructive treatment for the 287
tubercular patients now in our mental hospitals. The proposed budget
for mental health will provide tuberculosis treatment according to the
same standards, save for housing, as is provided in our state tubercu-
losis hospitals, which are considered to be among the best in the
nation.

Closely akin to the proposals for mental health is the tuberculosis
program of the state and county governments. In my recommendations
I have provided for an expansion in the number of beds available in
the state tuberculosis program. This will make it possible for 160 addi-
tional tubercular patients to be treated each year. In addition, the
proposed budget will provide for doubling the state’s surgical fa-
cilities. It is the lack of these which is the most serious single problem
facing the tuberculosis program today. The better provisions for
surgical treatment will not only benefit the patients treated but,
by expediting their use, will release precious hospital space for new
cases.

The state grant for Waverly Hills Tuberculosis Sanatorium in
Louisville will be increased from $400,000 to $500,000 for the bien-
nium. Sufficient funds are recommended for the other county tubercu-
losis sanatoria to permit payment of three dollars per day for each
indigent patient treated.

As I stated earlier, the executive budget places special emphasis
on provisions for handicapped persons. I have already discussed the

178 JOURNAL OF THE Mar. 29

proposed advances in rehabilitation and in mental and tubercular
treatment, but there are also included other services to the handicap-
ped. By handicapped people I mean those with physical, mental, or
economic problems. The expense resulting from repeal of the lien
law, which was a burden on some of our older people, is included in
this proposed budget; so is the cost of our program for assistance to
the totally and permanently disabled. These two programs along
with the full continuation of all aspects of present public assistance
assure many unfortunate Kentuckians that they need not bear their
burdens in silence and alone.

But we have not considered one of the greatest of the handi-
capped groups; that is, the criminals. It may well be that many of the
criminals we have in our institutions were not handicapped in any
way—perhaps they simply chose a life of crime. A great number,
however, were handicapped by Kentucky’s lack of modern over-all
program for the rehabilitation of the unfortunate young man or woman
who made his or her first mistake. The state and the courts may not
have provided an opportunity for probation. When such a person
served a first term, the state may not have provided general educa-
- tional or vocational rehabilitation opportunities for him. When he was
paroled, the state may not have provided proper guidance and super-
vision. As a part of my budget, I propose a comprehensive program
for corrections, including the financing of a model probation and
parole plan, improving the facilities in the various correctional in-
stitutions, and providing additional educational and rehabilitative pro-
grams in institutions for both the adult and the juvenile.

Another function upon which I have placed emphasis is agri-
culture, a way of life most basic to our economy in Kentucky. You
will recall that, in reviewing the support of the University of Kentucky,
I included recommendations for added appropriations for the Agri-
cultural Experiment Station, for Agricultural Extension, and for dairy-
processing equipment for training and demonstration purposes. In
addition to these proposals, I am recommending a $700,000 biennial
appropriation to the Department of Agriculture for a program to fight
brucellosis. This program is designed to eradicate this dread disease
from Kentucky by 1960. My recommendation represents an increase
of $580,000 for the biennium over the present brucellosis program.

Another area of agricultural emphasis in my budget is in the
Department of Economic Development, successor to the Agricultural
and Industrial Development Board. The recommended budget in-
cludes provisions for setting up a division of agricultural development
within the department and for providing, in addition to the administra-
tive cost of this division, a $25,000 a year fund for specific agricultural
projects. This program is designed to help the farmer develop new
markets and find additional products for present markets.

In addition to this, the recommended.budget includes provision
for increased fire control coverage of more than 459,000 acres of the

Mar. 29 HOUSE OF REPRESENTATIVES 179

state's timberland. It also provides for a nursery to be operated for the
benefit of agriculture and conservation and to be used as a means for
rehabilitation of the youth in the corrections program of the Depart-
ment of Welfare.

All of the emphasis which I have described has occurred in the
education, health, welfare, and agriculture programs. While these
programs represent virtually all of the added appropriations which I
am recommending, there are two agencies within the so-called general
government for which I am proposing increases. These agencies are
the Department of Public Safety and the Auditor of Public Accounts.
My recommendation for the Division of State Police will add 105
troopers to the number of officers, an increase of 65 percent in the
number assigned to full time road patrol. Even with this increase, our
roads will not be patrolled adequately.

The Auditor of Public Accounts is an office which, if properly
staffed, can save the state thousands of dollars in its influence on the
performance and record keeping of other state and county agencies.
My budget recommendation includes provision for an expansion of the
number of auditors by about 75 per cent.

As I have stated on many occasions, it is my intention to reduce
spending in any area where it is possible. My budget includes several
such reductions. The Departments of Public Relations, Alcoholic Bev-
erage Control, Motor Transportation, Insurance, and Aeronautics show
sizeable reductions. In addition to this, the State Property and Build-
ings Commission administrative functions, which will be assumed by
the Department of Finance on July 1, under the reorganization measure
you have already adopted, will be carried out at a reduced administra-
tive cost of about 40 per cent.

The budgetary provision for capital outlay is inadequate for lack
of money. I am recommending a general fund appropriation of $6,-
258,211 the first year of the biennium and $5,030,506 the second year
of the biennium, including the construction cost of the medical school
which was mentioned previously. These funds will be needed to fi-
nance the building of facilities for the welfare institutions, the tubercu-
losis hospitals, the mental health institutions, the county health units,
institutions of higher education, and all of the other agencies of state
government which may be allocated construction funds. Many times
this amount could be used wisely for the state.

One other recommendation for expenditures is that which will
finance the employees’ retirement system passed by the Regular Ses-
sion of the General Assembly. This program will require approxi-
mately $550,000 a year from the general fund, but will more than
pay for itself in the long run due to increased tenure of the efficient
state employees.

My recommendations include adequate provisions for meeting
the state’s revenue debt requirements. When I assumed office last
December, I found a deficit of about $77,000, which had gradually

180 JOURNAL OF THE Mar. 29

accumulated in the required reserve funds for New Capitol Annex
debt service. Because this debt service must be met and the state’s
credit protected, I make provision for eliminating this deficit and for
building up a surplus sufficient to guarantee that Kentucky will not
default on her revenue bond debt. The budget document I submit
to you contains an explanation of the specific plans for meeting the
New Capitol Annex debt requirements. Also included is a schedule of
all the state’s outstanding revenue bonds.

You will recall that I requested from you, and was granted, a
current-year appropriation of $2,100,000 to my emergency fund to
meet some needs that could not be deferred until July 1. The most
important project being financed with the appropriation is completion
of the New State Fairgrounds, estimated to require an additional
$1,450,000. You have placed the administration in a position to protect
the creditors on this project, who have advanced $6,000,000.

A budget is a comprehensive financial plan for the operation of
government. It provides not only for the expenditures during the
budget period but also for means of financing these expenditures by
revenue. My remarks thus far have considered only expenditure pro-
posals and have not presented specific revenue plans. By the time
you have finished with appropriation legislation, I shall be prepared
to submit a comprehensive tax program to an extraordinary session of
the General Assembly for the purpose of meeting revenue require-
ments. I shall leave the revenue part of this budget message for
presentation to the anticipated revenue session of the General As-
sembly.

In conclusion, I will summarize the budget in terms of total costs
by function and by sources of funds.

General Fund: 1956-57 1957-58
General Government $ 11,229,208 $ 11,866,987
Welfare 80,051,191 80,837,127
Education (Includes Medical School) 74,477,510 78,950,320
Agriculture & Conservation 1,823,880 1,805,060
Other (not including Medical School) 4,768,211 2,540,506

Total $122,350,000 $126,000,000
Road Fund 69,010,000 70,350,000
Trust and Agency Fund 92,573,538 94,082,408

Grand Total $283,983,538 $290,382,408

Representative Morgan moved that the Joint Session of the Gen-
eral Assembly do now dissolve. Agreed.

The Speaker resumed the Chair and called the House to order.

Mar. 29 HOUSE OF REPRESENTATIVES 181

Introduction of Resolutions

HR 3, by Representative Hahn: A RESOLUTION adjourning in
memory of the late Otto A. Rothert, recorder and publisher of Ken-
tucky history.

Representative Morgan moved that the House adjourn until 8:00
P.M., April 2nd. Agreed.

182 JOURNAL OF THE April 2

MONDAY, APRIL 2, 1956
FOURTH LEGISLATIVE DAY

‘The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend E. W. Baxter of the Episcopal Church,
Frankfort. :

The roll was called. All present except Bates, Blue, Breathitt,
Carter, Caudill, Conrad, Greene, Hadden, Hawkins, Hill, Hislope,
McCallum, Melton, Murphy, Nunn, Nunnelley, Qualls, Rayburn,
John B. Reed, Sloan, Stith, Tanner, Weintraub, Lynn B. Wells, and
Young, who were granted leaves of absence on motion of Represen-
tative Morgan.

Reading of the Journal for March 29, 1956, dispensed with and
the same approved on motion of Representative Isler.

Motions

Representative Lowman, seconded by Representative Bridgers,
made the following motion:

“I move that House Rule Number 35 be suspended during this
Third Extraordinary Session and that the House of Representatives
sit as a committee of the whole to consider all bills introduced during
this Third Extraordinary Session and that the Director of Finance be
requested, and if necessary, subpoenaed, to appear before the House
sitting as Committee of the Whole to give testimony concerning the
current Budget and concerning the proposed means by which it is to
be financed as is provided for in KRS 45.040 subsection (8).”

On roll call, the vote was yeas 32—Anderson, Barnum, Baum-
gardner, Breckinridge, Bridgers, Cornett, Farmer, Freeman, Griffin,
Grundy, Hahn, Heyburn, Highland, D. W. Howard, Lambert, Lowman,
Mackey, Martin, McKinney, Miller, Moore, Mullins, Ockerman, Peace,
Ratcliffe, Ray, R. Reid, Sr. Reynolds, Thomas, Walsh, Williamson,
Wilson. Nays 38—Beshear, Billington, Blankenship, Burnley, Bush,
Casey, Cottengim, Davidson, Davis, Day, Dunsil, Embry, Everett,
Flanery, Grigsby, Gullette, Harris, Hilton, Hinkle, Holsclaw, C. S.
Howard, Isler, Jennings, Johnson, Kubale, Morgan, Newsom, Parrish,
V. Reed, H. V. Reid, Saylor, Searcy, Thompson, Tinsley, Wathen,
A. W. Wells, Wirsch, Fitzpatrick.

Motion was rejected.

Introduction of Bills and Resolution
HB 1, by Representative Morgan: AN ACT relating appropriations
for the operation, maintenance, support and functioning of the Govern-
ment of the Commonwealth of Kentucky and its various officers, de-
partments, boards, institutions, subdivisions, agencies and other state
supported activities.

HB 2, by Representative Conrad: AN ACT relating to primary
elections.

April 2 HOUSE OF REPRESENTATIVES 183

HR 4, by Representative Morgan: A CONCURRENT RESOLU-
TION expressing appreciation of the General Assembly for the efforts
of the joint committees on Welfare Investigation and Insurance In-
vestigation and authorizing expenses for each member.

Recess
Representative Morgan moved that the House do now recess for a
Rules Committee Meeting. Agreed. At the appointed hour, the Speaker
resumed the Chair and called the House to order.
Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.

Report of Committee
Committee on Rules reported HB 1 and HR 4 with the expression
of opinion that the same should pass. Read at length for the first time
and ordered placed in the Calendar.

HB 1: AN ACT relating to appropriations for the operation, main-
tenance, support and functioning of the Government of the Common-
wealth of Kentucky and its various officers, departments, boards, in-
stitutions, subdivisions, agencies and other state supported activities.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

PART ONE

There is hereby appropriated out of the General Expenditure
Fund, including any surplus cash balance to the General Expenditure
Fund as of June 30, 1956, for the fiscal year beginning July 1, 1956
and ending June 30, 1957, and for the fiscal year beginning July 1,
1957, and ending June 30, 1958, the following sums for the following
officers, departments, boards, commissions, institutions, and subdi-
visions of the State Government, and any and all other agencies of
the State Government of the Commonwealth of Kentucky subject
to the provisions of Chapters 12, 42, and 45 of the Kentucky Revised
sina for which a specific appropriation is in Part One listed, as
follows:

I. GENERAL GOVERNMENT
1. LEGISLATIVE
A. Legislative Sessions

1950208 on soe el ee eee eee eee $501,790
B. Legislative Research Commission

95637 netic ees to eee $90,000

195 (208.5 cede seen ed aoe es Hea ees $91,000

C. Legislative Journals and Acts. For preparing, indexing, edit-
ing, and printing the Journals and Acts of the General Assembly. Any
unexpended balance at the end of the first fiscal year of the biennium
shall be carried over to the second year,

184 JOURNAL OF THE April 2

RDG OT iswnwsrmteecassteecee core yeseteeode $30,000
together with any unexpended balance available on June 30, 1956.

1907-08. eset eee sea eee eeeees sae $20,000
D. The Council of State Governments

1956-97) 22 -2o25 ok bee kate oenks $9,375

py |< gaa eae a eens Se earner $9,375
E. Statute Revision and Administrative Regulations

1956-7 cos a suo ek os eee esa easeetaaeaiess $41,500

TOD IDO tates ase aut e ee cons Baad ie $47,500

TOTAL-—LEGISLATIVE

iS a) 3 oY Spee en Re ne aCe RPE ea eo $170,875

TOS 1 DG: 2223 Sess oes oo eat ec hes $669,665

2. LIEUTENANT GOVERNOR
A. Office of the Lieutenant Governor

195657. oscacelc seco cssoeei ose es $15,000
LOO TOO easecane teat ete eet ee neces $16,000
B. Operation of Old Governor's Mansion

1906 OF. nce enc setiasGbetonscasw sda nanntedeees $4,750
LOST 08 on coc ctake sy wueeuseeseuetckinpaesssee $4,750
TOTAL—LIEUTENANT GOVERNOR

WQ56OT aa benee st edeene ce Pue Sen cee es aoancd $19,750
1OS7-08) coco coe pseu eee eect eeu eotescte $20,750

3. JUDICIARY

A. Court of Appeals. For normal recurring operating costs of
Court of Appeals, including salaries of judges and commissioners.

1090-90 Suse dcbcs cic ncn ssa e reese eeascaeee $233,500

FOS OG tee Seen tesiu chee e eect eaas $234,700
B. Clerk of Court of Appeals

OSG-O8 See ce ten pete cateuecses severe $33,975

TOD 08 yee setae et ea ae $34,400
C. Judicial Council

LOBDOT Ze cuedacg beta aet ob tel bela satease $17,500

190 (208 Soe ene ecu eee eee bene $17,500
D. Circuit Courts. For salaries and expenses of circuit judges.

LODO else chert el aoa aes $490,400

MOS (00 Saas ore eo tase enema R eet ay eae esse $490,400

E. Circuit Judges’ Retirement System. For administering and
complying with the obligations of the State under the Circuit Judges’
Retirement System Act, namely, KRS 23.300 to 23.380.

1 is oy eee eee he em, Rene ey See eee ener een ee $8,700

TOR TOS cao Sua as eee okbusear as Seeaneny $8,700
F. State Law Library

MOBO Ol co owal eae Pate Saas a eo see ences $33,300

AOS T +08 sos ce ee Sek $33,630

April 2 HOUSE OF REPRESENTATIVES 185

Subject to provisions of KRS Chapter 45 the financial administra-
tion of the above appropriations may, by order of the Court of Appeals
be committed in whole or in part to an officer designated by the Court
during the pleasure of the Court. The cost of the office may be ap-
portioned among the above appropriations as directed by the Court.
The officer may perform such other administrative functions for the
Court of Appeals and the Circuit Courts as the Court may direct.

TOTAL—JUDICIARY
1956-57 2223222 c2b Slo este ceten sce cead-s $817,375
1957-58 22ccc scare Seb ncre oe eeote ees eee $819,330

4, EXECUTIVE DEPARTMENT
A. Governor's Office

TQSG OG e083 neh 4 se Sete EE $62,500

LAS cy (cence EL ee eee eee $62,500
B. Contingent Fund

1ODG-BY esau eee ode e eases $10,000

1957-08 fede see Sue tecsted ee ees ccsser sce $10,000

C. General Emergency Fund. For meeting expenses deemed
emergencies by the Governor, and to be expended by the Governor
in his discretion for any emergency that he may determine requires
the expenditure of any part of said fund. Any unexpended balance at
the end of the first fiscal year of the biennium shall be carried over to
the second year,

1996-57. 22222052 cst neeseeeseetesesese sets $500,000
1997-58 ).2ic-o3eenec cece scccne ne nsleceesece $500,000
TOTAL—~EXECUTIVE DEPARTMENT

1956-67) su 2nc22- socescc koi cses cece eesceccet $572,500
1957-08 toss s2- ose sceleecees onl keecsssese $572,500

5. SECRETARY OF STATE
A. Secretary of State
1096-8 sacwew cn eceerseebevaceaascneeneesn ace $59,873
LOB FOS atte io Se soe us ele teeteeaesee $60,442
6. DEPARTMENT OF LAW
A. Attorney General
1900 OF wcisnacuniaut seceaecuseitsecoteees $117,600
1891-00 aa wencus Pen ceeseasonsseneteescteu $119,000
7. DEPARTMENT OF TREASURY
A. State Treasurer
T5604 ot toe Se cate een ase $83,980
TOD (06 sees at ee aoe dae Ss $78,605
8. AUDITOR OF PUBLIC ACCOUNTS
A. Auditor of Public Accounts
T90C 07 (2 ac awcicsuesosooNa eo oeuet cease $87,000
MOD IDO G2 ss or ee Sets er cre $87,000

186 JOURNAL OF THE April 2

9. DEPARTMENT OF FINANCE

A. General Operations. To be used for the Office of the Com-
missioner, the Division of Accounts, Division of the Budget, Division
of Purchases, and for the administrative functions transferred to the
Department of Finance by House Bill No. 1, First Extraordinary
Session 1956. An amount not exceeding ten thousand dollars may be
transferred to the Division of Services if the Commissioner of Finance
deems it necessary in order to administer the provisions of House
Bill No. 1, First Extraordinary Session 1956.

Alo] i] gene ee nS ae RECON E OPS ae atte ee $565,265

NQOIC98 Sete soe oe ele cs $555,050
B. Confederate Pensions

W99G- Ot Soe ees Sess eeceiices stud eli gegs ue $15,000

ODT Oe nek at eee oa e ee ae a $13,500
C. Paper for Election Ballots

LAS 5) 3 { ete earch een pT Oe RSE Oe $10,000

MOB TOS Sess c0ed. Sea ty ek eS eS $10,000
D. Division of Services. For general operations.

DOGO (xxi se itt Oe leek trees tae a ts $338,530

MOD TOG reeset ee ee OE oh eee $337,720

E. Division of Services. For operation of the Executive Man-
sion.

1s Ss ent a oO RRC ee RP $28,610
LOD (C08 so san ase eel aie Soe ects $28,610
TOTAL—DEPARTMENT OF FINANCE

ROOO OL nis seis acetate ose des $957,405
th of 2 = Sees Ee ee eae PSR a ear $944,880

10. DEPARTMENT OF PERSONNEL
A. Department of Personnel
NODC SE id ae aie a bene Saw aes el ell $72,075
LOST D6 ahah Soe oa ea ete eso wh eb aeSe $71,250

11, DEPARTMENT OF REVENUE
A. General Operations
AODO OL ils etett Sheela eee ed otis $1,333,100
TOD TDS eweceuccietewe ta Seduce ews $1,349,100
The balance of the funds included herein for functions now per-
formed by the Department of Revenue, but which functions will be
transferred to the Department of Public Safety on September 1, 1956,
pursuant to House Bill No. 1, First Extraordinary Session of 1956,
shall be transferred to the Department of Public Safety on September 1,
1956.
B. Reappraisals
PO0G- 36 ante eet aes Bo cests eset eas $75,000
So 2s: > ee ue mt ee ec =e et $75,000

April 2 HOUSE OF REPRESENTATIVES 187

Any unexpended balance at the end of the 1956-57 fiscal year
shall carry forward to the 1957-58 fiscal year.

C. County Tax Commissioners

WOGG-O) oe 64 Ge eat ee $1,190,000
AOGT 00 titans ioe ee kee ioe tata $1,215,000
TOTAL—DEPARTMENT OF REVENUE

AUSG-Ol eco needeet 6 Ree ees ee $2,598,100
TOS (coe: Scie eat iwce cet cee OOS oe ae tt $2,639,100

12, ELECTIONS
A. Board of Election Commissioners

MOOG 8) eee ceica nee attra ty ot ee elo $1,700
TOD I DG) coin Ga oe eta ee CS cera te $1,700
B. Board of Registration and Purgation
DODD ON ica ets so oe neice ace eoantan $9,100
oY | Se eens ae re a ee eT eR ane ere a $3,200
C. Elections. For County Elections (State Share).
FODG-OF seas cenchae ad eae et te $170,000
BOD OO ance ote ae 2 Gey man a hake G $170,000
TOTAL—ELECTIONS
POG O f os oh tee kus a ee eae o esas $180,800
AOD THB ie cee tae het sel ee ek $174,900

13. DEPARTMENT OF MILITARY AFFAIRS
A. Adjutant General

1956:07 : ec esata te $155,000

1957-0828 oe Soe ee ene ek lee eee $162,000
B. Armories—Rental

1956-57) nen Schoo ee occ bee $121,720

1997-08 225 220s co een eel) esc ee $121,720
C. Repairs to Armories

DOSO+8 7 ne aco t et ae ota se Sem set gels fa! $33,000

WBS O8 ae otcretioees te hae od ee $39,000

TOTAL—DEPARTMENT OF MILITARY AFFAIRS

WIDG-OT pose boat io eee foe aig odio $309,720

OST HDS iss So scree pare alee hae eos SOOO, TOO

14. KENTUCKY DISABLED EX-SERVICE MEN’S BOARD
A. Kentucky Disabled Ex-Service Men's Board.
ANNO Of a tead sate od SEE oe a $121,800
AOS 7208 (Cal aes a onenelssewencceuces oe $122,700
15. DEPARTMENT OF PUBLIC SAFETY
A. Department of Public Safety

188 JOURNAL OF THE April 2

1956-07 s2go5 tsa hee eta ee tn cme All money made
transferable to it by this Act for performing the functions provided for
in House Bill No. 1, First Extraordinary Session 1956.

1957-08 i. ccsstensacueeeasetescedeeees All money made
transferable to it by this Act for performing the functions provided
for in House Bill No. 1, First Extraordinary Session 1956.

16. DEPARTMENT OF STATE POLICE
A. Department of State Police
1956-57 2c ote ece haces aeeuesaweee eeu $200,000
i Lo Go: See an a a UP BP pres Saree ree $200,000
The balance of the funds included herein for functions now per-
formed by the Department of State Police, but which functions will
be transferred to the Department of Public Safety on September 1,
1956, pursuant to House Bill No. 1, First Extraordinary Session 1956,
shall be transferred to the Department of Public Safety on September
1, 1956.

17. DEPARTMENT OF AERONAUTICS
A. Department of Aeronautics
1956-57 _..-..---.--------------------------- $94,000
1957-58 _._--.------------------------------- $94,000

18. DEPARTMENT OF ECONOMIC DEVELOPMENT
A. General Operations

WQDGST eo Seedoctis man mcetake esse oeeeesiae $202,600

1957-58 __--..--.-----.--------------+------- $198,700
B. Mineral Survey

1956-57 __._..-...-.----------~--------------- $42,000

1957-58 ___-.--..----...--------~-------------- $42,000
C. Topographic Mapping

TODG257 oot ce ne es eee eee ease $4,000

1957-58. 2-22 -----noon222ese-254-254-o--5 $4,000
D. Water Resources Survey

1956-57 ....-..-------~---~--~+--~+---------- $96,000

1957-58 _...---.....-----=---=-----+-++-------- $96,000
E. Agricultural Development Research

1956-57 —........----------~-=----++-+------=== $25,000

1957-58 ...-....-----++-~----~~---=4++---=--- $25,000

TOTAL—DEPARTMENT OF ECONOMIC

DEVELOPMENT
1956-57 2 222-22005--2-2 0+ nnea nse snu-<5-- $369,600
1957-08 cnt ole tee eee ca ce eeaeeee ness $365,700

19. DEPARTMENT OF BUSINESS REGULATIONS
A. Division of Athletic Control
1956-57 cata ooo ect ee cae eeed oes $6,700
TOS 58 Geile Sen fees ai hee bane $6,700

April 2 HOUSE OF REPRESENTATIVES 189

20. DEPARTMENT OF INDUSTRIAL RELATIONS
A. Department of Industrial Relations. For general operations
other than the Workmen’s Compensation Board.
W99G-3F set oscsetisc car ceteeweonaactineose $105,300
LOS T+O0 eeic chs Spee cat ee ace tse $107,800

21. DEPARTMENT OF MINES AND MINERALS

A. Department of Mines and Minerals
TODG-ON o 8c Sacer aba teee ue teens $250,430
T9078 Seder eoste en oak ees $258,730

22. RAILROAD COMMISSION
A. Railroad Commission

IQDG Ol Des oSen teeth coos cet ee a $30,750
AY Cs ae ae ee a ne en ne eee REE $31,100
23. DEPARTMENT OF ALCOHOLIC BEVERAGE
CONTROL
A. Department of Alcoholic Beverage Control
P0600. Cesta erase ees ee a bei Me $220,000
1907-08 522 ccpecSe nese Scotus neoetcnetes. $220,000

24. APPROPRIATIONS NOT OTHERWISE CLASSIFIED
A. Money Refunded. For refunding money paid into the State
Treasury, which may be later determined not to be a lawful collection
by the State. No money shall be refunded, however, after it has been ~
paid into the State Treasury except by authority of the head of the
department or agency to whom the money was originally paid and
the approval of the Commissioner of Finance.
WISG-OF Sessa cowct Seu caue sce The Amount Necessary
NOD (FOS: eewewcesec eS ae ie The Amount Necessary
B. Bonds of Elective Officers. For payment of premiums on
bonds of elected State Officials who are required by law to execute
bonds to the Commonwealth of Kentucky, the payment of which is
incumbent upon the State,
TODCOT oboe Swed Sian See ceeeelee uae $1,300
BOD 08 os Std ae an ween eeseuuadasest ote $1,300
C. Judgments. For payment of such judgments as may be ren-
dered against the Commonwealth by order of Court and approved by
the Attorney General,

$0009 /) 2eaoti aa eSiten assesses ee louie oo! $35,150

ROST-OG Se rete Se ee eet en eeaus $35,750
D. Frankfort Cemetery.

ISSO 1 So ae ean a. pteiee mere Ae ee wee $250

LAL (os Sa eee eee ee ee ee ERC OTe NE Se aS $250

E. Franklin Circuit Court. For purchase of supplies and equip-
ment in accordance with KRS 28.165,
A? | Sa en ene =P RO FOS ee eae $300
POST 00 ae a ae eg et $300

190 JOURNAL OF THE April 2

F. Statutes, Rules and Regulations for Courts. For the purpose
only of purchasing from the Legislative Research Commission copies
of the official statutes of Kentucky, the Rules of Civil Procedure, and
administrative regulations compilations, in accordance with KRS
57.840, Any unexpended balance at the end of the first fiscal year of
the biennium shall be carried over to the second year.

TOSS Fo cccerecse poe ee ees ke OUD
» P9578 ccna inet eee ee ste occa tele ee $3,500
G.: Kentucky Directory
WO56-S ise Seek eee ee ee eas eccak ese $1,100
Interstate Oil Compact
1956-57. 2 eennaseaceccennesn-et-nass-no =< _...$1,000
1957258 occas ce cveokl reset eedseb esse less $1,000
I. Prior Year Claims
1956-57 .----- Ese ae ineee menee The Amount Necessary
1057-08 os es se eensstGaecetoayes= The Amount Necessary

J. Public Improvements. For paying assessments for public
works against property owned by the state as provided by KRS 93.440
and 94.297,

1956-57 (eco co ee Geese eee esac $7,000

1957-58 .-.....-..-.--------------+-+---------- $20,000
L. Capital Planning and Zoning Commission. For expenses of
participation in the program of the Commission,
1956-57) 226535 ce ea chssne tel asteeSsoeeen ss $600
1957-58 ..------..---.--<---------12-42-----=+6 $600
M. Social Security for Circuit Clerks, Master Commissioners,
and Court Reporters,

1086 57 2 esse et Cats $11,800

Tec Ae eo Ree $11,800

TOTAL—APPROPRIATIONS NOT OTHERWISE
CLASSIFIED

105687 ec tee -cat ewan estrucl tone $81,500

105758 oe Geos og cain ee te $81,500

ne
25. COUNTY COSTS
- A. Clerks’ Services, Criminal Prosecutions, Jury Commissioners,
Trustees of Jury Funds (Circuit Clerks), Commissions on Fines and. -
Forfeitures, Commonwealth's Attorneys, Return of Fugitives from
Justice, County Highway Patrol, Premiums on Sheriff's Bonds, Pauper

April 2 HOUSE OF REPRESENTATIVES 191

Idiots, and County Boards of Supervisors. All county costs are deemed
to be necessary governmental expenses and additional funds may be
allotted by the Commissioner of Finance,

TODOS 7 ate ee eee eee he $2,942,500
1001-008 je See SON eth coe he $3,032,500

26. DEPARTMENT OF INSURANCE
A. General Operations
LE os So ee a ae ee ee ee Os i Pe $242,630
TOSTAOS co ceecul ee Sie ios es ee eee cass $246,510
The balance of the funds included herein for functions now per-
formed by the Department of Insurance, but which functions will be
transferred to the Department of Public Safety on September 1, 1956,
pursuant to House Bill No. 1, First Extraordinary Session 1956, shall
be transferred to the Department of Public Safety on September 1,
1956,
B. Fire Prevention. For fire prevention and administration of
the liquefied petroleum gas program.
TODGOT ‘one ce eee ease hie cet nee sees $236,945
TOD 1-08 ote eo ace ces cata ne eae eles $239,105
The balance of the funds included herein for functions now per-
formed by the Department of Insurance, but which functions will be
transferred to the Department of Public Safety on September 1, 1956,
pursuant to House Bill No. 1, First Extraordinary Session 1956, shall
be transferred to the Department of Public Safety on September 1,
1956.

27. KENTUCKY STATE HISTORICAL SOCIETY
A. Kentucky State Historical Society
TO0C OI iat os iene ote oa tee $25,000

1957-58) 25. -sc22ssesscc he eeehetet cel aesle $25,500

28. DIVISION OF LIBRARY EXTENSION
A. Division of Library Extension
1956-57 _...._--..--------------- ae tee $180,000
1957-58). oekaki ee ete soe uess $180,000
Includes $50,000 each year for the Public Library Service Com-
mission.

29. DEPARTMENT OF PUBLIC RELATIONS
A. Department of Public Relations

TOD6 207: ote ee acon Set eee eat ee eS $75,000
1957-08 = see coe See i ee et $75,000

TOTAL—I. GENERAL GOVERNMENT
1956-57 see sct Sense erases set $11,229,208
1957-58: seo. a sesso Sos ee ee $11,866,987

192 JOURNAL OF THE April 2

Il. WELFARE
380. DEPARTMENT OF WELFARE
A. Central Office. For expenses of the Office of the Commis-
sioner, Division of Staff Services, Division of Technical Services,
Division of Corrections and Division of Farm Management.

WOSC-01 ain oriaa acon ceneSeeracawoaaeeaweaeee $185,300

10S (D0 ceun ceo nteeemonatnoueeanetoneoedeee $188,800
B. Kentucky Training Home

1956-0 ander eee oe oawanbnee eases $796,500

AOS (08 ac evned eee see cleete een esas $810,500

C. Penal Institutions. For expenses of Kentucky State Reforma-
tory, Kentucky State Penitentiary, and Women’s Prison,

JOGO), eretneeaece nee seseasoeesw econ te $1,790,500

1967-06 ac Sous suceecondatecnecaeteaces eae $1,863,700
D. Division of Probation and Parole

1996-00 enevtnSunctewoneasotiscoeie ies seecs $357,900

1ST DS sceGsenser ec ccaoteu eo eacscaereose $452,250
E. Parole Board

TEOG-OF tit ors eo eee ae $39,000

MOG T-08 Sos at cate pete eaten ht es $39,500

F. Children’s Services. For expenses of the Division of Children’s
Institutions, Kentucky Village and Kentucky Children’s Home,

WOOG-Of Saceee cece ot ons eel Geese $984,600

LOS (OS Setecscneee esl ea Sanoee et eeeas $978,550
G. Prison Industries

N9SCO! gesSase sat tas sebodca sasha dunt ow $25,000

1957-00 eos leaiwoaa i Sace eons Vetoes $25,000
H. Home for Incurables

1000-0) saccsse eee aceon eee $15,000

BOT 200 wea ee tea ae he Sse ae $15,000
I. Maintenance of Buildings

TOD0+OT Sosa noche nope casceeesueausiees $100,000

100-90 lottesuees a Sess eee eee. $100,000

TOTAL—DEPARTMENT OF WELFARE

TUGU-O0: ote Sreatt nderetencee sare acs $4,293,800

ROS HOO etme ache aot tn sa aeees $4,473,300

81. DEPARTMENT OF ECONOMIC SECURITY

For ordinary expenses of operation and cooperation (matching
of funds) with the Federal Government under the Social Security Act
of August 14, 1935, and any amendments now in effect or hereinafter
enacted and under any act of Congress supplementing said act as
amended, including adjustments of prior year or current year accounts
necessary to comply with the federal regulations. Also, for the ad-
ministration of Old Age Assistance, Aid to Dependent Children, Serv-

April 2 HOUSE OF REPRESENTATIVES 193

ices to Needy Children, Aid to the Needy Blind and Aid to the Per-
manently and Totally Disabled, including cost to the State Treasurer
for preparing, printing and issuing checks for recipients of Public
Assistance Programs.

A. Public Assistance — Administration. Notwithstanding the pro-
visions of KRS 45.235 and any other provisions of the Kentucky Re-
vised Statutes, any unencumbered balance of this appropriation re-
maining at the end of the first fiscal year of the biennium shall lapse
in accordance with the provisions of KRS 45.230. Any of the money
appropriated herein may be transferred to Children’s Services—Bene-
fits with the approval of the Commissioner of Finance.

POSG-OF Sn osencce oe sue eke cecateeceeees $1,842,215
IOS TDS eo ake tices eet ea inoe secneee $1,345,595

B. Public Assistance — Benefits. For Old Age Assistance Pay-
ments, Aid to the Needy Blind, Aid to Dependent Children and Aid to
the Permanently and Totally Disabled, and not to be used for costs
of administration. Any unexpended balance at the end of the first
fiscal year shall be carried over to the second and placed in a reserve
fund which may be expended by the Commissioner of Economic
Security for the purposes of this appropriation with the approval of
the Governor,

| 5! 7 ates ean esc pe nn ee Pee ere er $11,571,370
LL sy Cs: ae ne eee eee ee ce ee $11,851,380

C. Children’s Services — Administration. Notwithstanding the
provisions of KRS 45.236 and any other provisions of the Kentucky
Revised Statutes, any unencumbered balance of this appropriation
remaining at the end of the first fiscal year of the biennium shall lapse
in accordance with provisions of KRS 45.230. Any of the money ap-
a a herein may be transferred to Children’s Services—Benefits
with the approval of the Commissioner of Finance.

TO56-OF (23 dee oe ated cect es cee tones $440,900
MOS T-DB sot alee oe ae sou etacsue ese sed $440,900

D. Children’s Services — Benefits. For boarding home care and
other benefit expenses, and not to be used for costs of administration.
Notwithstanding the provisions of KRS 45.236 and any other pro-
visions of the Kentucky Revised Statutes, any unencumbered balance
of this appropriation remaining at the end of the first fiscal year of the
biennium shall lapse in accordance with the provisions of KRS 45.230.

I9SC-Di jaro keeSe a ete oweeae $300,000
LOG 108: oaeleie Pe tee el ete eae $300,000

E. Division of Personnel Security. For administering the Social
Security Act.

1956-57) 22-2255 Sie Seach sheen eset es $18,150
1957-082 2355 Oe $17,660

194 JOURNAL OF THE April 2

TOTAL—DEPARTMENT OF ECONOMIC SECURITY
TOSG-OF oes ea eds ele daeadawaneed $18,672,635
POD (OO ye eee arte aioe Ue le eel ol $13,955,535

81. DEPARTMENT OF HEALTH
A. General Operations and County Health

11 10 ef gee eles a Popp ERED eee ee ea $2,209,300

IODT-OG: Saaeaaces arse ewe tenooeaese eaten $2,274,900
B. Red Cross Hospital

NODC Of aula ce soe e ee eee wee le $25,000

TOD OG weak Geen hc tote te $20,000
C. Kentucky Crippled Children’s Commission

SOD GOs oe a oe ee a ae la $207,000

TOD T900. ooo bt. Oe Ate eee cease $208,000
D. Julius Marks Tuberculosis Sanatorium

NQDG-00 Ait seca aati ate eee eet Pa te $99,000

LS a 6S Leese ea RCE i CRO Sees nNOS $99,000
E. Covington-Kenton County Tuberculosis Sanatorium

WODG Oh ncet othe ase Go ea oan ns seawe seas $56,000

WOOT OB a 522 ae t CO a ome memeat be $56,000
F. Warren County Tuberculosis Sanatorium

WODG OF ise eee Aes Bae Ci ek $32,400

WOSirOS 225-555 sk be esheets $32,400
G. Waverly Hills Tuberculosis Sanatorium

UDG) weceetasset ose e se to eee $250,000

TOS TOG aie Ui ini 3 in Od Sateen Hoke ee $250,000
H. Water Pollution Control Commission

AODG-S 6 1S- ce stewed ca oe ee $45,500

VOGT ADS etn ol le ue an teense sect. $46,000
I. American Society for Control of Cancer—Kentucky Division

TOS, fore itoee r ear eu tasted oat $45,000

bo a> lc ene ee cae eee pee ee eae ge ee $45,000
J. Rural Medical Scholarship Fund. To be expended for the

purposes of the present rural medical scholarship. fund only.

TOOGIO echt se oe ele ot neta nae $25,000

DOO TOG eS oe Baa Ease ls $25,000

TOTAL—DEPARTMENT OF HEALTH

BODO 0 oh eS he e hest O ole aes $2,994,200

tS cf es: See ene Oe NR NRE $3,056,300

32. STATE TUBERCULOSIS HOSPITAL COMMISSION

A. State Tuberculosis Hospital Commission. For administrative
and i erie: expenses of the Commission and institutions under its
control and supervision,

April 2 HOUSE OF REPRESENTATIVES 195
TQD020 (tects Boe oT ees eas $2,244,700
AOD G00 sees ewe Sao te eee sees ei $2,214,800

33. DEPARTMENT OF MENTAL HEALTH
A. Department of Mental Health

WQSC-57 . 2s sssctseeca cs esetewesn ens ass $6,845,856
19D (708) cae esoe ace lon ee Ses eee $7,187,192
TOTAL-II. WELFARE

1956:07 | -2ec232 so 5ece2 sosesse Sc sesserese $30,051,191
1957-58: cece se oeet tess st jones en odes hese $30,837,127

Ill. EDUCATION
34. DEPARTMENT OF EDUCATION
A. General Operations. For expenses of the divisions within the
department and State Board of Education,
LODGral eoicasccn conta sone coaarecesyeealesee $697,375
POD (908 ate cts oe aene coeeeae ee $708,600
B. Division of Education for Veterans (Veterans’ Approval
Agency). For payment of administrative expenses in connection with
the approval of educational institutions for training and educating
veterans for which reimbursement is made by the Federal Government.
This appropriation shall not lapse at the end of the fiscal year 1956-57,
‘but shall be available during the second year of the biennium, and
shall lapse at the end of the biennium.

DODB BT assist Beem tel amos u eee tant! $14,000
C. School Foundation Program

T0000 sce Sac een ete sees $54,207,900

TOBTADS Getotsseaoeee Sets ecedeekuee $57,201,900

The State Board of Education shall not approve any working
budget or salary schedule for local board of education for the school
years 1956-57 and 1957-58 in which the total amount budgeted for
teachers’ salaries is not equal to or greater than the amount to be
included in the Foundation Program for a district for teachers’ salaries
as determined under Kentucky Revised Statute 157.890. No working
budget or salary schedule shall be approved in which the average
salary paid any rank of teacher is not at least equivalent to the allot-
ment for that rank and in which any teacher is paid less than ninety
per cent of the Foundation Program allotment for that rank.

The Superintendent of Public Instruction shall not allot to any
school district more basic classroom units than the number of teachers
employed by that school district for basic classroom units. No basic
classroom units shall be allotted which increase in 1956-57 or 1957-58
the differential between the pupil-teacher ratio of the secondary
grades (9-12) and the elementary grades (1-8) in 1955-56. No basic
classroom units shall be approved which provide in a given building

196 JOURNAL OF THE April 2

or school a lower pupil-teacher ratio than twenty-seven in average
daily attendance to one, or the pupil-teacher ratio which obtained in
1955-56, whichever is lower.

The Superintendent of Public Instruction shall allot class-
room units for superintendents, principals, their certified assistants
and special instructional personnel as provided in Kentucky Revised
Statute 157.360, subsection 6, only for personnel who are qualified for
their respective positions under provisions of law and regulations of
the State Board of Education and who maintain programs approved
under regulations of the State Board of Education. The State Board of
Education may designate ASIS units which may be allotted either as
basic units or ASIS units, but otherwise no excess of ASIS units shall
be used to compensate for a deficit in basic units.

The number of units alloted by the Superintendent of Public
Instruction for vocational education and the education of exceptional
children shall not exceed the following:

1956-57 1957-58
Vocational Agriculture ....-------------- 259 274
Vocational Home Economics .------.---- 351 381
Trades and Industries _..--...---------- 65 75
Distributive Occupations .-..--.--------- 13 17
Exceptional Children ---_--------------- 120 135

The Superintendent of Public Instruction shall not allot a full
classroom unit for any one-teacher school with fewer than 25 pupils
in average daily attendance unless it has been determined on the
basis of a survey that no facilities are available to which these pupils
could be transported under regulations of the State Board of Educa-
tion and no full classroom units shall be allotted for any one teacher
school which has fewer than 12 pupils in average daily attendance.

Facilities that are used to house school children shall be approved
by the Superintendent of Public Instruction under Kentucky Revised
Statute 162.060 and 162.160. No alterations or additions of old buildings
shall be made without prior approval of the Superintendent of Public
Instruction. No space shall be rented or purchased and converted to
classroom use without prior approval of the Superintendent of Public
Instruction. The State Board of Education may adopt regulations for
the approval on an annual basis of temporary facilities for the housing
of school children but these regulations shall not permit the division
of any present room by partitions of non-structural material. No class-
room units shall be allotted for a second teacher in the same classroom.
No facilities shall be approved for classroom use which are detrimental
to the health of or dangerous to the safety of school children.

If a school district operates any school or grade of a school for
a term of less than nine scholastic months or for a school day of less
than the minimum required by Kentucky Revised Statute 158.060, the
average daily attendance of such school shall be reduced propor-

April 2 HOUSE OF REPRESENTATIVES 197

tionately by the Superintendent of Public Instruction in determining
the allotment of classroom units provided for under Kentucky Re-
vised Statute 157.360, subsection 2 except as provided for by regula-
tions of the State Board of Education.

If at the time of the tentative allotment of school funds under
Kentucky Revised Statutes 157.310-157.440 it shall be determined
that insufficient revenue is available to finance in full the Foundation
Program including a provision that no district receive less than $80
per child in average daily attendance and no district receive less total
state aid than it received from the Per Capita Fund in 1955-56, the
Superintendent of Public Instruction shall not allot any classroom
units under Kentucky Revised Statute, 157.360, subsection 3.

D. Free Textbooks. For the purchase of textbooks as provided
for in KRS 157.100 and 157.190.

1956-57: 22224 ce evs S eu eee el seecce veces $1,034,000

1957508 ise sac Ses ashe secacacceasenee $1,034,000
E. Vocational Education—Adult Special Programs

TOQ5C-OF onto oe eee ote nete $414,330

LL Sy 2G, vee eee ee Ses ere ee teemn yaa $446,350
F. Out of District Children

NOOSE poche Ye be cistaeet pe eae ese nese $30,000

1957-58 5-52 segeeccasetsek eau ste oe een ase $30,000
G. Kentucky School for the Blind

195607 «aboot eee ee es et eeeieeeee te $207,900

ALS of a: eee eee ee ee ee ee oe a $211,040
H. Mayo State Vocational School

LODB-OY. ole ceso ho eh acotencuweogueeaseecs $211,340

1050-58 22 2asoe oo eee eevee eee cee $204,950
I. Northern Kentucky Vocational School

T0067 sopdot. fo oene tacos cc taedeees es $73,010

1007-06, Sst lee oe ea ce as $72,450
J. West Kentucky Vocational School

LOB Sion sea se eee eeheedate detec sees $116,810

IOS 1-35 sie id Se eee ened $113,940
K. The Division of Rehabilitation Services

1956-07 poco So aew cha eto ose sao ous $192,350

POSTHO8, 26 tes ein sec tenocesenavonst $222,800
L. Kentucky Industries for the Blind

1990-0 wawce saya cea e eae eeeaase aco onee $21,000

IGS 100 qe tae eciceu tae cee ue het eeeu as $21,000

TOTAL—DEPARTMENT OF EDUCATION

MOB 31 ocnclret povissaece dan sceh eee $57,220,015

NOS7-58 cise seb eaes eno dole oe $60,267,030

198 JOURNAL OF THE April 2

35. COUNCIL ON PUBLIC HIGHER EDUCATION
A. Council on Public Higher Education—Administration. To be
expended only for the salaries and expenses of a full-time staff to ad-
minister the functions of the Council including administration of the
Veterinary Medicine Scholarship program and the Medical Education
Program,
WOQSO- Ot Suse eleven ees ao a $13,670
TOD OO see sot Settee se oe an $13,150
B. Southern Regional Education Board. For participation in the
activities of the Southern Regional Education Board including the
Mental Health Council and the veterinary medicine program.

TODO Ot ete Meebo Ree oe eee sae aas $74,000
POGP0S Sete tocauite ce kee ae ht tse ees $77,000
C. Medical Education Program
HODG-O In So oot et ee es a ee Aa $500,000
10D 700 ccuaeceeaes Ma iaietas DT sys catalan $500,000
TOTAL—COUNCIL ON PUBLIC HIGHER EDUCATION
WOSOOT oie toe cae tae eee tL $587,670
DOD COO, Save a Se tab coe eae $590,150

36. UNIVERSITY OF KENTUCKY
A. Division of Colleges

WOOO-OF ah sacks cee alee SS $4,860,000

AOS THOS tee tote eet eee A $4,860,000
B. Interest on Land Grant Bonds

A006-9 0 6322s sea hak ae ee $8,700

LOST OO ooo asco eas oie hea tnena ede elia mies $8,700
C. Agricultural Experiment Station

WOOGOT eee aceasta ate caw $708,000

DOD THOS cit ioe oo eS iene au eed $708,000
D. Agricultural Experiment Station — Purchase of Dairy

Equipment
TOS O-DT oateiaisd tae ener ee $100,000

E. Agricultural Extension. For expenses of Agricultural Ex-
tension, and participation under the Hope-Flannigan Act (Agricultural
Extension ),

TOSCO hats tater sae ieee tS $828,000
DOO T00 deces anaes ioe tte ie tale $828,000
TOTAL—UNIVERSITY OF KENTUCKY

ODODE 2 oer ae ate ak es $6,504,700
d0Ob OO. Swe cnem weds fake eee $6,404,700

37. EASTERN STATE COLLEGE
A. Eastern State College

April 2 HOUSE OF REPRESENTATIVES 199

1956-57 22-225 sco s soa ct ee sce ese se ustedes $830,885
1957-58) 2%. - oon eee s a sche socks esses $921,600

38. MOREHEAD STATE COLLEGE
A. Morehead State College
1956-57 2. oes ee oe den ceenesseesscesensess $610,360
T0578 oo cae encaka aloes teecateceneyaree $666,875

39. MURRAY STATE COLLEGE
A. Murray State College
TQ50-O toc eseeet otek ot io ee Se $810,985
POST DO 28 22 se ceed eae ae ees sanS $897,750

40. WESTERN STATE COLLEGE
A. Western State College
[O5G257 22sec cc ec ce cbeeteset eee eke $849,665
VO57-58 2 Soe ke, eons Sees eat $939,785

41. KENTUCKY STATE COLLEGE
A. Kentucky State College
TO5G6-50 2s sess ceseke nue cee at sence $500,630
O01 OS 2622 e Soe ctes eect ote ee $523,000

42. TEACHERS’ RETIREMENT SYSTEM

A. Teachers’ Retirement Fund. For administering and-comply-
ing with the obligations of the State under the Teachers’ Retirement
Act, namely, KRS 161.220 to 161.710,

W958i sos oo daecisecaes shies seeckae se $4,096,875
MOD POS: Sodas Genoa soe ee areca as $4,259,830

43. SCHOOL FOR THE DEAF
A. School for the Deaf
1956297 (24.223) 22. ot ee cee elses eek $318,325
V957-58 <22n octet cee eee eee ee $329,200
44, LINCOLN INSTITUTE
A. Lincoln Institute

1956-57-22 ose oset bt Doe ats t ates sees ru $145,400
1957-58 2s ests sks so see ee ane es $150,400
TOTAL-—III. EDUCATION

1956-07 asacs adeeb sisc esa sre eens ecese at $72,475,510
1957-58 202 u=L esse sence eee a4 see cee $75,950,320

45. DEPARTMENT OF AGRICULTURE

A. General Operations
| ts ee eae a eee eee ae eee rate mae $298,670
MORI -00 sbacecncetire nen he tina ee ece ea $302,410

B. Livestock Sanitation and Disease Control

200 JOURNAL OF THE April 2

1956-57 22sec sce ee $400,000
1957-58722 lee eo ahh ee el le see $400,000
46. STATE FAIR BOARD

A. State Fair Premiums
1956-57 oe coach eo $100,000
95708 ous see os ee eee Nees $100,000

47. DEPARTMENT OF CONSERVATION
A. Office of the Commissioner

LOS GOT ee eee oe ee arse es $129,250

IODT OS soeorecacseeltaseneee tele oce eet g $108,290
B. Division of Forestry

LODO ae Seb eleenn heehee Suet $419,600

1057-06 8 tos 2 oie Sees aan eeceeeeek Ss $415,000
C. Division of Parks

TOD O-O 0 ect otc cee ett coetle $225,000

NOB Tr00 56 one tee sete ce eee cacceet eee $225,000
D. Division of Soil and Water Resources

De ee ee nL a a $88,500

WOSTDS -aeececidacc etc ced eceeeabecs $89,200
E. Division of Strip Mining and Reclamation

WOOO seca o 5 ase Sot th ee it aaa $15,000

TOD T S08 oslo a Gr ee Geese aces sescesse $15,000
F. Division of Flood Control and Water Usage

WODGOF eo otcoii os wien Seba nenecoumeniees $31,600

LS 2 Eo. Rae Sane nec ene apen eee Seem $31,600
G. Ohio River Valley Water Sanitation Commission

I99G-S 7) oben eaacewewel Soe Ds eet ha'd $27,260

LOD TDG. ee eng edatc eee Se ee Sols oes $27,560

TOTAL—DEPARTMENT OF CONSERVATION

TODO Ol nett antes cue Sete ee oes $936,210

WOO(08 ja eeescot desvich aso ete $911,650

TOTAL-—IV. AGRICULTURE AND CONSERVATION

1O0C OF ede le Se iS $1,732,880
TD ROS: init Se Soh eather ie Gab ad a $1,714,060

V. OTHER
48. DEPARTMENT OF FINANCE
A. Capital Construction Fund. For expenditure in accordance
with the provisions of Article XVI, Sections 1 through 15, House Bill
No. I, First Extraordinary Session 1956. Any unencumbered balance of
this appropriation and such balances of prior capital outlay appro-

April 2 HOUSE OF REPRESENTATIVES 201

priations to the State Property and Buildings Commission remaining
on June 80, 1956 which were transferred to the Department of Fi-
nance by the above cited article may be expended thereafter and
shall not lapse but shall be carried forward until expended, This
appropriation shall include $2,000,000 in 1956-57 and $3,000,000 in
1957-58 for the purpose of constructing a medical science building and
related science buildings at the University of Kentucky.

$956-57~ ecco osetia Be $6,258,211

1957-58: wesc eso ed se code nedeecceee $5,030,506

49. KENTUCKY EMPLOYEES’ RETIREMENT SYSTEM

A. Kentucky Employees’ Retirement Act. For administering
and complying with the obligations of the State under the Kentucky
Employees’ Retirement System, pursuant to the provisions of House
Bill No. 463, Regular Session 1956.

OSB 57 est toon oe we tor ae eae agen) $510,000
1057-56 ign oo aoe cde ahaa a eenaee $510,000
TOTAL—OTHER

WSO 37) ccnehe ce tee ee atlas ate $6,768,211
DOR Sasa fete Sten eee aces $5,540,506

GRAND TOTAL
1956-57 ‘252-522 2oo-ne ston en ese en sstee $122,257,000
1957-58 2 -.22-+-------=--=--+-=-------- $125,909,000

en SS LS

LL
PART TWO
STATE ROAD FUND

There is hereby established for the purpose of paying all costs of
operation and maintenance of the Department of Highways and for
carrying on its activities and functions, a State Road Fund which shall
consist of all the revenue realized from fees, taxes and license fees
levied for State Road Purposes now authorized by law, and any addi-
tional or other revenues, grants or funds, including any amount which
may be received from Federal aid or any other source pursuant to
the provisions of KRS 177.030, made available for the construction or
reconstruction of public roads or for any other of the activities ad-
ministered by the Department of Highways. Such receipts and
revenues, together with any balance in the existing State Road Fund
as of June 30, 1956, shall constitute the State Road Fund for the fiscal
years 1956-57 and 1957-58. There is hereby appropriated from the
State Road Fund the following amounts for the following depart-
ments, agencies, and sub-divisions of the State Government, for the
following purposes:

202 JOURNAL OF THE April 2

I. HIGHWAY DEPARTMENT GENERALLY
1. DEPARTMENT OF HIGHWAYS
A. Department of Highways. For use by the Department in
activities, functions, and duties performed by it as prescribed by law,
all monies received and placed to the credit of the State Road Fund,
not otherwise appropriated in this or any other Act.

2. RURAL HIGHWAYS

A. Division of Rural Highways. For improvement, construc-
tion, reconstruction and maintenance of county roads and bridges,
which have not been accepted by the Department of Highways for
maintenance, the sum of Five Million ($5,000,000) Dollars for each of
the fiscal years 1956-57 and 1957-58. This appropriation is to be ex-
pended in accordance with the provisions of KRS 179.410 to 179.480.
Not more than six percent (6%) of this appropriation shall be used
for administration.

B. Secondary and Rural Roads. For the construction, reconstruc-
tion and maintenance of secondary and rural roads, two-sevenths of
all revenue received under the provisions of KRS 188.320. This ap-
propriation is in addition to the amount appropriated under Section I,
sub-section 2, Paragraph A, of Part Two of the Appropriation Act.
IJ. APPROPRIATIONS TO DEPARTMENTS AND AGENCIES

OTHER THAN HIGHWAYS
3. DEPARTMENT OF TREASURY
A. Department of Treasury. For expenses pertaining to treasury
administration for the Department of Highways,
TOOG OI. iis ose aoe oe aS a $49,250
bo SY fa ee eee ee ne EE eee ee $46,455

4. DEPARTMENT OF FINANCE
A. Department of Finance. For expenses pertaining to financial
administration for the Department of Highways,
WOGG-ST ica cuceeeelG he Seaene ces e oe eee $165,575
VOGT OB a5 he eke eie eos ass $161,525
B. Division of Services. For expenses of operation of buildings
for the Department of Highways,
POSG-O1 re < aaa neh go etait atte Pott $66,550
MOTOS essai el Soest atte at OR ee ahi $66,600

5. DEPARTMENT OF PERSONNEL
A. Department of Personnel. For expenses pertaining to per-
sonnel administration for the Department of Highways,
LR a 5s avn ee re ee en: Se ee RD EN ne RUE Ser ar PE $43,810
W90 08 te Set ae Sa eas eeekee sa ten oul $43,160

6. DEPARTMENT OF REVENUE
A. Department of Revenue. For administering and enforcing
the laws pertaining to the gasoline, motor fuels and any other taxes

April 2 HOUSE OF REPRESENTATIVES 203

comprising the State Road Fund, and administering and enforcing
the laws relating to motor vehicle registration and other laws relating
to motor vehicles and highways.

1956-57 .22e3eoe sae fe ieee so ee te $1,047,500

J957-58: 2ace ses es See eure ee ae $1,060,000

The balance of the funds included herein for functions now per-

formed by the Department of Revenue, but which functions will be
transferred to the Department of Public Safety on September 1, 1956,
pursuant to House Bill No. 1, First Extraordinary Session 1956, shall
be transferred to the Department of Public Safety on September 1,
1956.

7. DEPARTMENT OF PUBLIC SAFETY
A. Department of Public Safety
1956-57 ncn cca cee ese oe elt Sees All money made
transferable to it by this Act for performing the functions provided
for in House Bill No. 1, First Extraordinary Session 1956.
OD OG: rete es oas Soci eS Se ces All money made
transferable to it by this Act for performing the functions provided for
in House Bill No. 1, First Extraordinary Session 1956.

8. DEPARTMENT OF STATE POLICE
A. Department of State Police. For expenses of operation of the
Department as is provided by law.
LOB6 30 8 Sot Sesh Sees Sag $3,183,333
HOG 7-08. woe etc ous csaeec oes eee beets $3,133,333
The balance of the funds included herein for functions now per-
formed by the Department of State Police, but which functions will
be transferred to the Department of Public Safety on September 1,
1956, pursuant to House Bill No. 1, First Extraordinary Session 1956,
shall be transferred to the Department of Public Safety on September
1, 1956.

9. DEPARTMENT OF ECONOMIC DEVELOPMENT
A. Topographic Mapping Program

TOBG-OF win oS 2s Sato enegennesaseeseneos $4,000

LOD OB a a oa Sambi cask eae ateecseass $4,000
B. Water Resources Survey

TODO-O 1 a cameme tare tite Sain Se $48,000

10D 1-00 Siete dee ame ees eOP ESAS ee le $48,000

10. DEPARTMENT OF MOTOR TRANSPORTATION
A. Department of Motor Transportation
T0508? ocwecl. 2a ses Soe seta nniwnneneees $345,125
1957-08) sceccCeas oaks du teeto eet eee $353,525
The balance of the funds included herein for functions now per-
formed by the Department of Motor Transportation, but which func-
tions will be transferred to the Department of Public Safety on Sep-

204 JOURNAL OF THE April 2

tember 1, 1956, pursuant to House Bill No. 1, First Extraordinary
Session 1956, shall be transferred to the Department of Public Safety
on September 1, 1956.

\ll. DEPARTMENT OF PUBLIC RELATIONS
A. Department of Public Relations. For expenses incident to
the preparation, publication and distribution of road maps, booklets,
photographs, advertisements and other activities intended to advertise
and publicize Kentucky highways and highway conditions, tourist,
scenic and travel attractions and places of interest to motorists.
VOS6-5? soceeeasie ews eel eee teNo $250,000
bay; eee ge eee pea $250,000

TOTAL APPROPRIATIONS TO DEPARTMENTS AND
AGENCIES OTHER THAN HIGHWAYS
1956-57 22-2 ssn tenes sue ee secs ecce se $5,153,148

Ill. KENTUCKY EMPLOYEES’ RETIREMENT SYSTEM
A. Kentucky Employees’ Retirement System. For administering
and complying with obligations of the State under the Kentucky
Employees’ Retirement System, pursuant to the provisions of House
Bill No. 463, Regular Session 1956.
TObG oS occ ce ater tes etek ee ae $745,000
TOS 7-06 232A cha seco ese ate as $745,000

IV. ADMINISTRATION AND EFFECT

All funds appropriated to the Department of Highways by Section
I of Part Two of this Act (Highway Department Generally) shall be
allocated equitably by the Commissioner of Highways, with the ap-
proval of the Commissioner of Finance, between the various activities
and functions of the Department of Highways.

The appropriations made by this Act are subject to the provisions
of Chapters 12, 42, and 45 of the Kentucky Revised Statutes. Nothin
in this Act shall be construed to repeal any appropriation for the fisc
year to the State Road Fund ending June 30, 1956.

PART THREE
REVOLVING, TRUST AND AGENCY FUNDS

There is hereby appropriated to the various boards, commissions,
institutions, agencies and/or subdivisions of the State Government only
as are listed herein for the fiscal year ending June 30, 1957, and for the
fiscal year ending June 30, 1958, all of the fees (which include fees for
board and room, athletics, student activities) and rentals, admittances,
sales, licenses collected by law, contributions, gifts, subventions, federal
grants and other federal receipts and other miscellaneous receipts
produced or received by any of the following agencies of the State
Government, except as otherwise specifically provided, for the use
and benefit of each of the below named agencies of the State Gov-

April 2 HOUSE OF REPRESENTATIVES 205

ernment for the purposes for which each fund is authorized. Receipts
which are received by each of the respective agencies of the State
Government listed herein shall be placed to the credit of a Revolving
or Trust and Agency Fund out of which shall be established separate
Revolving or Trust and Agency Fund Accounts for the use and benefit
of these agencies of the State Government for purposes for which each
fund is authorized.

In the event receipts received and credited to any Revolving or
Trust and Agency Fund Account during fiscal year 1956-57 or fiscal
year 1957-58 and any balance forwarded to the credit of any such
account from the previous fiscal year exceed the appropriation made
by specific sum to said account in this Part of this Appropriation Act,
the excess is hereby appropriated to the credit of said account for the
fiscal year in which the excess occurs; provided, however, that said
excess shall become available for expenditure for the purpose of the
account during said year only with the authorization of the Commis-
sioner of Finance and approval of the Governor.

Except as herein otherwise provided, the appropriate agency may
requisition for expenditure from the Revolving or Trust and Agency
Fund Account, through the Department of Finance, during the fiscal
year ending June 30, 1957, and during the fiscal year ending June 80,
1958, all receipts placed to the credit of the Revolving or Trust and
Agency Fund for such year, out of which has been established a
Revolving or Trust and Agency Fund Account for each separate agency
during such fiscal year, plus any balance which said agency may have
had forwarded from the preceding year on or before September 80,
of the then current fiscal year, by the Department of Finance.

I. GENERAL GOVERNMENT
1. LEGISLATIVE RESEARCH COMMISSION

A. Statute Revision—Administrative Regulations

B. Statute Revision Commission—Printing Revolving Fund. To
be used for the printing and the distribution costs of the Kentucky
Revised Statutes, Notes and Annotations to the Kentucky Revised
Statutes, and supplements to these publications. Reimbursement shall
be made to this account from sales of these publications.

2. JUDICIARY
A. Board of Bar Examiners
1056-01 eooense coeeinaatencenscoenwsaweseudies $8,200
NO OG He pene ac tah eit al eaten atic $8,700

_ 8 AUDITOR OF PUBLIC ACCOUNTS

A. Auditor of Public Accounts
TO5G-O0: see se oS le oe ee ea ke $20,000
1OS(-O8. cccessbinateneetaeniSoncs sees. vances $20,000

4. DEPARTMENT OF FINANCE
A. Paper Revolving Fund. The balance in the Paper Revolving

206 JOURNAL OF THE April 2

Fund and all receipts credited to the Fund during the 1956-57 fiscal
year and during the 1957-58 fiscal year are appropriated for use dur-
ing that period, provided, however, that $40,000 of the balance in the
Fund as of June 30, 1956 shall be transferred to the General Expend-
iture Fund.

B. Division of Services Revolving Fund. To be used to pur-

chase and provide stamps and postage, supplies and equipment for
the various budget units of State Government. Reimbursement shall
be made to this account by the various budget units for materials,
supplies and utility services furnished and services rendered. Any
funds to the credit of this account shall be available for expenditure
for any of the purposes specified herein but such accounting prac-
tices shall be maintained by the division as will accurately reflect
the financial condition of the various functions being performed with
the funds in the account. Any unexpended balance remaining at the
end of the fiscal year 1956-57 shall not lapse, but shall be available
for expenditure during any following fiscal year.
C. Central Stores Revolving Fund. All assets and obligations
of the central store account as of June 30, 1956, are transferred from
the Division of Services Revolving Fund and deemed to be appro-
priated to and assumed by the Central Stores Revolving Fund.
Any funds to the credit of the Central Stores Revolving Fund shall be
available for purchase of supplies and services. Reimbursement shall
be made to this account by the budget unit for supplies and services
used. An unexpended balance remaining at the end of fiscal year
1956-57 shall not lapse but shall be available for expenditure during
any following fiscal year. Notwithstanding the provisions of KRS
42.055 (2), the Commissioner of Finance is authorized to assign ad-
ministration of the Central Stores Revolving Fund to any Division
of the Department of Finance.

5. DEPARTMENT OF MILITARY AFFAIRS
A. Adjutant General
TODO OE oe au ee Sta ee a oe $600
TODOS: oaSe chet tess oe ee Ce eae $600
6. DEPARTMENT OF AERONAUTICS
A. Commissioner of Aeronautics

TODG-ON he aad oe eesee eae eel ee LS $2,000
AGS P08 Sica ee tt eat i es $2,000

B. Airport Development

7. DEPARTMENT OF PUBLIC SAFETY
A. Department of Public Safety’
TOOC SE eB i ot ee Sa All money made
transferable to it by this Act for performing the functions provided
for in House Bill No. 1, First Extraordinary Session 1956.

April 2 HOUSE OF REPRESENTATIVES 207

1957-08 evens a ee eee eke All money made
transferable to it by this Act for performing the functions provided
for in House Bill No. 1, First Extraordinary Session 1956.

8. DEPARTMENT OF STATE POLICE
A. Department of State Police
1956-57: 222 ee er ote che ones $7,000
1957258° uc Shel ou ses es ee sete G eee $7,000
The balance of the funds included herein for functions now per-
formed by the Department of State Police, but which functions will be
transferred to the Department of Public Safety on September 1, 1956,
pursuant to House Bill No. 1, First Extraordinary Session 1956, shall
be transferred to the Department of Public Safety on September 1, 1956.

9. DEPARTMENT OF ECONOMIC DEVELOPMENT
A. General Operations
956-57) 222 Succ ue we eet ee $42,000
1957-58 ink col a A $37,650

10. DEPARTMENT OF BUSINESS REGULATIONS
. Board of Accountancy

Board of Psychology

Board of Examiners and Registration of Architects
Board of Barbers and Beauticians Examiners

Board of Chiropractic Examiners

Board of Dental Examiners

Board of Embalmers and Funeral Directors

Board of Pharmacy

Board of Prophylactic Enforcement

Board of Nursing Education and Nurse Registration
Board of Veterinary Examiners

Board of Registration for Professional Engineers
Kentucky Real Estate Commission

Board of Optometric Examiners

Board of Chiropody

Board of Opthalmic Dispensers

11. DEPARTMENT OF INDUSTRIAL RELATIONS
A. Department of Industrial Relations—Workmen’s Compensa-
tion Board
N9DG-S1 mesic sheets lat cs esas Ses $216,600

NOZZM ATM MOM OD

12, DEPARTMENT OF MINES AND MINERALS

A. Department of Mines and Minerals
1956-57 conc bo acsnceetasdees sl aneeettcuse eee $50,025
200 7-08 (as cucu Aan tes cose $37,870

13. DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL
' A. Confiscation Expense

208 JOURNAL OF THE April 2

14. DEPARTMENT OF BANKING
A. Department of Banking

1956-57 esos ses ee suse Seesaw seen sek $150,000

LOST 00. us eeceews cae esa cons ateweneseegcel $150,000
B. Division of Securities

1956-57 = 22035422 Sle se tesco ee caste $11,730

1957-58 2 Spaces eee iene te See See ete $11,730

15. COUNTY FEES

A. Jefferson County Master Commissioner

B. Jefferson County Receiver

C. Jefferson County Fees. For paying various officials of Jeffer-
son County seventy-five percent (75%) of the fees provided by law
to be paid by the State to such officials when such claims for fees have
been presented to the Department of Finance in the form and manner
prescribed by law and approved by the Commissioner of Finance, and
to pay to the Fiscal Court of said County twenty-five (25%) percent
of said fees as may be required by KRS 64.350.

D. Kenton County Fees. For paying various officials of Kenton
County seventy-five (75%) of the fees provided by law to be paid
by the State to such officials when such claims for fees have been
presented to the Department of Finance in the form and manner pre-
scribed by law and approved by the Commissioner of Finance, and
to pay to the Fiscal Court of said County twenty-five (25%) percent
of said fees as may be required by KRS 64.350.

E. Fayette County Fees. For paying various officials of Fayette
County seventy-five percent (75%) of the fees provided by law to be
paid by the State to such officials when such claims for fees have
been presented to the Department of Finance in the form and manner
prescribed by law and approved by the Commissioner of Finance, and
to pay to the Fiscal Court of said County twenty-five percent (25%)
of said fees as may be required by KRS 64.350.

F. Campbell County Fees. For paying various officials of Camp-
bell County seventy-five percent (75%) of the fees provided by law
to be paid by the State to such officials when such claims for fees
have been presented to the Department of Finance in the form and
manner prescribed by law and approved by the Commissioner of
Finance and to pay to the Fiscal Court of said County twenty-five
percent (25%) of said fees as may be required by KRS 64.350.

G. Pike County Fees. For paying various officials of Pike
County seventy-five percent (75%) of the fees provided by law to be
paid by the State to such officials when such claims for fees have been
presented to the Department of Finance in the form and manner pre-

April 2 HOUSE OF REPRESENTATIVES 209

scribed by law and approved by the Commissioner of Finance, and
to pay to the Fiscal Court of said County twenty-five (25%) of said
fees as may be required by KRS 64.350.

16. TRUCK LICENSES-COUNTY SHARE
A. Truck Licenses-County Share. There shall be credited to
this fund for the purpose of distribution to counties such portion of
truck licenses as is provided by law, at such times as the Department
of Finance may order.

17. DEPARTMENT OF INSURANCE

Notwithstanding any provisions of KRS 186.360, 234.160, 228.030
and 804.463 to the contrary, the following receipts only are authorized
to be placed to the credit of the Trust and Agency Fund and are
authorized for expenditure out of the Trust and Agency Fund. All
other balances remaining on September 80, 1956, and all other re-
ceipts collected during the 1956-58 biennium shall be placed to the
credit of the General Expenditure Fund.

A. Custodian of Securities. All sums paid for expenses under
the provisions of KRS 304.508.

B. Insurance Examiners Expense. All fees paid pursuant to the
provisions of KRS 304.035.

C. State Fire and Tornado Insurance Fund. All money re-
maining in the Fund as of June 30, 1956 and all money placed to the
credit of the Fund during the 1956-58 biennium, except that notwith-
standing the provisions of KRS 56.150 to the contrary, no funds may be
used for expenses of administration.

18. KENTUCKY HISTORICAL SOCIETY
A. Kentucky Historical Society
1OSG Of tseaee oe ee ase $6,000
BLS if s]~ eee ae Ee esr Saete ene hele epee $6,000

19. DIVISION OF LIBRARY EXTENSION
A. Division of Library Extension
1956-5i. 23 so oes ee Sank See eu aees et eee $600

19. PUBLIC SERVICE COMMISSION
A. Public Service Commission. The fees collected subject to
the provisions of KRS 278.180 to 278.150.

20. DEPARTMENT OF PUBLIC RELATIONS

A. Department of Public Relations
1956-57 one eet a ale a ieee ere oee $10,000
TOS (08 2 oo coc eS eee asec $10,000

II WELFARE
1. DEPARTMENT OF WELFARE
A. Central Office

210 JOURNAL OF THE April 2

B. Kentucky Training Home

1956257 kc emt er ek oa ee i $23,500

NOS 7-56 ou 3 8 ee A le a et $23,500
C. Penal Institutions

1956257222 su oc eee ot eee et $200,567

1957-58 eee le seo oe wea ne See AT A $181,220
D. Children’s Services

1956-5 (22 ee os el et ne Stelle 7 $9,500

VO57258. sects eee he te oe De hd $9,500
E. Prison Industries

1956-57 222.c065n oes ce St ek eee ee ee SL $830,000

1957-08. 42 32 Soe ee oe oe es $940,000

2. DEPARTMENT OF ECONOMIC SECURITY

A. Department of Economic Security. To be used for the
purpose of acquiring suitable office space for the Bureau of Employ-
ment Security in the city of Louisville for money credited to the Un-
employment Trust Fund under the provision of Section 903 of the.
Federal Social Security Act, as amended, for the fiscal year ending
June 30, 1957, the sum of $200,000.00 and for the fiscal year ending
June 30, 1958, the sum of $300,000.00; provided, that the amount which
may be expended during the fiscal year ending June 30, 1957 shall
not exceed the amount by which the amount credited to the Fund
under Section 903 of the Federal Social Security Act during such
fiscal year and the preceding fiscal year exceeds the aggregate of the
amounts expended pursuant to such section during such fiscal year,
and the amount which may be expended during the fiscal year ending
June 30, 1958 shall not exceed the amount by which the aggregate of
the amounts credited to the Fund under Section 903 of the Federal
Social Security Act during such fiscal year and the two preceding
fiscal years exceeds the amounts expended pursuant to such section
during such fiscal year and the preceding fiscal year; and provided
further, that no expenditure shall be made under this act after the
close of the two year period beginning on the date of enactment
hereof. Any unexpended balance at the end of the first fiscal year
of the biennium shall carry over to the second year; and any unex-
pended balance at the end of the two year period beginning on the
date of enactment of this act shall revert to the Unemployment Trust
Fund at such time, or at such earlier date as is practicable if for any
reason any amount appropriated hereby is not to be expended or can-
not be expended for the purpose set out above.

_ B. Department of Economic Security. All balances and receipts
of all other trust and agency accounts are hereby appropriated to the
Department of Economic Security for each year of the 1956-58 bien-
nium. ;

April 2

C.
Agency )

HOUSE OF REPRESENTATIVES

8. DEPARTMENT OF HEALTH
General Operations and County Health
TOBG 00 ee cee tid Sts ee tet are $1,116,200
1: een Pe ey ae $1,080,800

4. TUBERCULOSIS SANATORIA COMMISSION
Tuberculosis Sanatoria Commission

1956-57 x2 soe s eee ee to ene ate oases $144,650
VOB TDS ert othe te oe Oh A ct cl Mente Oye $136,800

5. DEPARTMENT OF MENTAL HEALTH

-Department of Mental Health

NORCO ahaa os rexwenrcse nr geen ate macse ete $522,700
ROB (08 ie Sia eta ea anaes $522,700

II EDUCATION

1. DEPARTMENT OF EDUCATION
General Operations

211

MODE ON os So i eerie toe ee A $98,250
WOOT -8\ 4 2085 te ae Se ea ee aes $94,900
Division of Property Utilization (Surplus Property)

A 2 2] ee a ei ee Re eS Ne ate $210,000
LA fa) = ee a es eo Rares ae IO OPO SPR $220,000
Division of Education for Veterans (Veterans’ Approval
MOSCOW, 2 tee Se ean be Sake $63,180
NOD TOS <oteo et See bE ka $64,434
School Foundation Program

A oo ae etna ee eee eT ee eT $577,600
TOD TD8 toes hace ate c neo Saeed eaene $583,600
School Lunch Program

VODG-S Ecotec sath ere Sasha tte oye $1,900,000
bo he ee ae ee ee nN ees PESTER $1,900,000
School Milk Program

TODO ttoels eee ct eta SGE ek es OS $1,450,000
US 1 a Seana ae a ee $1,450,000
Vocational Education—Adult-Special

TOGO! Sac saaee a wt aroh Leese etal $254,150
LS 2 eee ea eco ee ee eee oe ee $251,500
Vocational Education-Veterans’ Program

FDO au teeta hein ek eee ee $819,600
DOS D8 ot Re ee $769,600
Jeannes Fund

WOO G eth Gale setter Ga ee ee $2,720
MOSTA99 a ceeunin chess vie Sse Seek os sa $2,720
Mayo State Vocational School

WOOO smoot te ce ia ee ee sn coo $119,640

POO IG 6 Sed eae Re eed a oe $114,150

212 JOURNAL OF THE April 2

K. Northern Kentucky Vocational School

VOSO8! aca d eeee aen ease pesreaeee $11,990

POR T-06 Sioa ee eee ed ae oe tee $12,000
L. West Kentucky Vocational School

TO5G-0 i ces el She eee esas $55,360

LOD TOS enacts pie ele eee recae aaa waeaeen $62,650
M. Division of Rehabilitation Services

NIDG-5 Sacco eee ecstencsecepeeeaccncusene $385,365

DOT -00 canctauho cto s aos BO uate dss $456,390
N. Kentucky Industries for the Blind

WOSG-B7 oleh uate ect Soe sleet uses $165,000

1957 -DS Ss sscco occa eGeuee bas uaeensew eee $170,000
O. Business Enterprise Program

TOBE screencast en dena aac neat $6,875

i: oy 2h, ace ee a a ae eo ee eS eens $6,875
P. OASI Disability Determination Program

111s Bs y ean ne ee ee Ce eee $38,520

pay 2st alee ene tele Ia OCONEE eee $39,340

2. UNIVERSITY OF KENTUCKY
A. University of Kentucky
1st c as ¢ Aeeee nana es mele = Fre aenemet Menes Mane eae $4,478,000
TORT 00 tele te eee aa senaes $4,478,000

38. EASTERN STATE COLLEGE

A. Eastern State College
1956-57 2cseue cist elie eed sees $795,560
1057-58 oe a8 be te tia et eae $820,550

4, WESTERN STATE COLLEGE

A. Western State College
TOOT 1 attegeetearee Sons eos teeeueirdsosaas $556,260
AOD 108 2s oceebenen asst ten olue owes ceed $586,955

5. MURRAY STATE COLLEGE

A. Murray State College
1096-D eos ee aint ee cee $665,182
IOS (08 cout es eeu earte se ccuse kes $692,347

6. MOREHEAD STATE COLLEGE

A. Morehead State College
TORO OT Bate Sueno netdacaence sac t ease $410,625
TOS1-38 pi oa chee eee Seat eud geese $425,255

7. KENTUCKY STATE COLLEGE

A. Kentucky Staie College
1906-90 goes cs en aeeonaebuetees $209,540
WO5 08 2 oes 8s sat eens $219,293

April 2 HOUSE OF REPRESENTATIVES

8. LINCOLN INSTITUTE
Lincoln Institute
1956-57. oieunacee swore Bae Bee eed $93,318
10576583 cen Sacaeecceee tet ee ts $93,318

9. KENTUCKY SCHOOL FOR THE DEAF
Kentucky School for the Deaf
WONG Of tones cee oslo wees se $15,310
TOD 00 nawtees Steen cee een oe $9,565

IV AGRICULTURE AND CONSERVATION

1, DEPARTMENT OF AGRICULTURE
Department of Agriculture
1950-9 Fees ne ese oes Sean eae eenehatne $44,760
1987-06 oo eee ce eee keecenneaekesuaoes $45,280

213

Dog Law—Administration, and Indemnities and County Share

2. STATE FAIR BOARD
State Fair Board

38. DEPARTMENT OF CONSERVATION
Division of Forestry

LOGS wedisin pe Saegceuestannetecusse ceases $281,300
LOOT Gries case et tee heat cemse cents $295,000
Division of Parks

TODOS | nant eotok seca tae ie $2,150,000
TOS 1-08 heute tc cciteee ett codavewecacecoaseas $2,220,000
Division of Strip Mining and Reclamation

DODOrO 6 co te ok aman a sole $29,415
LOS THOS seaccaseudebescdacascuUScessuHeacaen $30,800

Division of Soil and Water Resources

4, DEPARTMENT OF FISH AND WILDLIFE RESOURCES

Department of Fish and Wildlife Resources
5. KENTUCKY NATIONAL PARK COMMISSION
Kentucky National Park Commission
PART FOUR
GENERAL PROVISION

1. Nothing in this Act shall be construed to repeal any appropria-
tion for the fiscal year ending June 30, 1956 and nothing in this Act is
to be construed to amend or alter the provisions of Chapter 42 of the
Kentucky Revised Statutes pertaining to the duties and powers of the
Commissioner of Finance. All questions that arise in interpreting any
appropriation in this Act as to the purpose for which the same may be
expended shall be decided by the Commissioner of Finance in ac-

214 JOURNAL OF THE April 2

cordance with the detailed estimates embodied in the budget report
as considered by the General Assembly, and the decisions of the
Commissioner of Finance shall be final and conclusive.

2. Whereas, the finances of the Commonwealth can not be
ascertained at this time, and since the actual needs of each officer,
department, board, commission, institution, or subdivision of the State
Government can only be anticipated and not finally determined
by the Legislature, and since the total amount of revenue accruing
to the General Expenditure Fund from which these appropriations are
hereby made can only be anticipated through existing laws and those
that may hereafter be enacted, it is the purpose and intention of this
Act that the expenditures for each fiscal year under Part I in this Act
shall not exceed the total revenues anticipated to accrue to the General
Expenditure Fund for the same fiscal year. As the conditions can not
be finally determined until after the adiouranient of the 1956 General
Assembly, and as the needs of each officer, department, board, com-
mission, institution or subdivision of the State Government and the
total revenues accruing to the General Fund can not be fully deter-
mined at this time, it is the intention and the purpose of this General
Assembly that the Commissioner of Finance, with the advice of the
Commissioner of Revenue and the approval of the Governor of the
Commonwealth, be and he is hereby authorized, empowered and
directed to ascertain and determine the needs of each officer, depart-
ment, board, commission, institution or subdivision of the State Gov-
ernment, and to ascertain the total revenue anticipated to accrue to the
General Expenditure Fund of the Commonwealth, and upon the
ascertainment and determination of said facts, he, the Commissioner
of Finance, in the manner set forth and as provided by general law,
is hereby authorized, empowered and directed by the General Assem-
bly to prevent an overdraft or deficit in any fiscal year for which ap-
propriations are herein made, by equitably reducing, according to
need, without discrimination, the appropriations herein made in Part I
to any officer, department, board, commission, institution, or sub-
division of the State Government; provided that the power hereby
vested shall not permit any reduction of the appropriation of any
officer, department, board, commission, institution or subdivision of
the State Government that will actually impair the necessary con-
stitutional functions of any agency whose operations and functions
are determined to be necessary constitutional functions of government.

3. In enacting this Budget Appropriation Law, it is the deliberate
intention of the General Assembly to enact each section, and each
sub-section thereof, as a separate and/or specific appropriation and
law, and if any section or any subsection thereof shall be held invalid,
or unconstitutional the decision of the courts shall not affect or impair
any of the remaining sections, sub-sections, or provisions contained
herein.

April 2 HOUSE.OF REPRESENTATIVES 215

4, All continuing appropriations in existence at the time this
Act takes effect are hereby discontinued and repealed by this Act,
except as provided by Chapters 12, 42, 45, and 56 of the Kentucky
Revised Statutes. All laws and parts of laws in conflict with any of
the provisions of the above enactments, to the extent of such conflict,
are hereby repealed.

HR 4; A CONCURRENT RESOLUTION expressing appreciation
of the General Assembly for the efforts of the Joint Committees on
Welfare Investigation and Insurance Investigation and authorizing
and directing that each member of the respective committees be paid
his expenses, incurred in connection with work of said committee, out
of funds appropriated to the Legislative Research Commission.

WHEREAS, the Joint Committees on Welfare Investigation and
Insurance Investigation, established respectively by House Resolution
Number 4 and Senate Resolution Number 6 have completed the duties
imposed upon them by the General Assembly of the Commonwealth of
Kentucky; and

WHEREAS, the duties of the said committees, involving long and
arduous work, have been completed in an efficient, orderly and ex-
peditious manner reflecting credit not only upon the individual mem-
bers of such committees but upon the 1956 Session of the General As-
sembly of the Commonwealth of Kentucky; and

WHEREAS, the efforts of said joint committees have resulted in
numerous recommendations designed and calculated to promote the
best interests and general welfare of the citizens of this great Com-
monwealth; and

WHEREAS, it has been necessary for each member of the said
joint committees to travel extensively in the performance of committee
duties, with respect to the purposes for which each was established,
expenses incident to such travels having been borne by each individual
committee member;

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky, the Senate concurring therein:

Section 1. That the General Assembly of the Commonwealth of
Kentucky does hereby express its appreciation to the members of the
Joint Committees on Welfare Investigation and Insurance Investigation
for the speedy, orderly and efficient manner in which their duties have
been performed.

Section 2. That the Legislative Research Commission is hereby
authorized and directed to reimburse each member of the Joint Com-
mittees, out of funds appropriated to said Commission, any and all
amounts of money expended by him for travel and any other expenses

216 JOURNAL OF THE April 2

in connection with his duties while performing the authorized work of
the respective committees.

Representative Morgan moved to adjourn until 1:00 P.M., April
3rd. Agreed.

April 3 HOUSE OF REPRESENTATIVES 217

TUESDAY, APRIL 3, 1956
FIFTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend E. W. Baxter of the Episcopal Church,
Frankfort.

The roll was called. All present except Blue, Bridgers, Buchanan,
Bush, Casey, Caudill, Davis, Dunsil, Everett, Farmer, Griffin, Hadden,
Harris, Highland, Isler, Lambert, Martin, McCallum, Melton, Moore,
Murphy, Newsom, Nunnelley, Qualls, Ratcliffe, John B. Reed, Tanner,
Thomas, Tinsley, Weintraub, Lynn B. Wells, and Young, who were
granted leaves of absence on motion of Representative Morgan.

Reading of the Journal for April 2, 1956, dispensed with and the
same approved on motion of Representative Burnley.

Senate Message
Senate message announcing passage of SR 7; read by Clerk.

Orders of the Day
Representative Morgan moved that the House concur in SR 7.

SR 7: A JOINT RESOLUTION directing the Legislative Research
Commission to study the feasibility of establishing a residential train-
ing school or other facility for crippled children.

WHEREAS, it has been suggested that a residential training
school for crippled children be established; and

WHEREAS, it is necessary that information be gathered on which
the members of future sessions of the General Assembly can base
their opinion on this subject; and

WHEREAS, the Legislative Research Commission has the staff
to make a comprehensive study of such subject,

NOW, THEREFORE,

Be it resolved by the General Assembly of the Commonwealth
of Kentucky:

Section 1. That the Legislative Research Commission be and it
is hereby directed to make a study of the desirability and feasibility
of establishing a residential training school or other facility for crippled
children. The study shall include consideration of the proper location
of such a facility and the suitable organizational and administrative
position for it within the existing governmental structure of the Com-
monwealth.

Section 2. That the Legislative Research Commission shall re-
port to the next regular session of the General Assembly, on its findings
and recommendations.

SR 7 was adopted.

218 JOURNAL OF THE April 3

Calendar
HB 1 and HR 4 were taken from the Calendar and read at length
for the second time. Ordered placed in Orders of the Day.

Representative Morgan moved to adjourn until 10:00 A.M., April
4th. Agreed.

April 4 HOUSE OF REPRESENTATIVES 219

WEDNESDAY, APRIL 4, 1956
SIXTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend E. W. Baxter of the Episcopal Church,
Frankfort.

The roll was called. All present except Nunnelley, John B. Reed,
and Tanner, who were granted leaves of absence on motion of Rep-
resentative Morgan.

Reading of the Journal for April 3, 1956, dispensed with and the
same approved on motion of Representative Isler.

Introduction of Resolution
HR 5, by Representative Buchanan: A RESOLUTION relating to
education.

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky:

That the members of the House of Representatives of the General
Assembly of the Commonwealth of Kentucky favor the full imple-
mentation of the Minimum Foundation Program for Education as
provided in the Executive Budget submitted to them on April 2nd,
1956.

Representative Buchanan moved adoption of HR 5. No action
taken.

Representative Day moved HR 5 be referred to Rules Committee.
Agreed.

HR 6, by Representatives McCallum and Billington: A RESOLU-
TION urging the Department of Conservation to continue to permit
the use of beach and swimming areas of the state parks without a
charge therefor.

Whereas, it has been for some period of time the policy of the
Department of Conservation to permit the public to use the beach and
swimming areas of the state parks without making a charge therefor;
and

Whereas, it would appear that the policy in this regard is to be
changed and a charge made for the use of the beach and swimming
areas; and

WHEREAS, the imposition of a charge for the use of the beach
and swimming areas of the state parks may cause children to use
unprotected swimming areas with an increased danger of possible
loss of life; and

Whereas, it would appear that guests of state operated hotels,
motels, and cottages will be permitted to use the beach and swimming
areas of the state parks without any additional charge therefor; the

220 JOURNAL OF THE April 4

result being to give state-owned hotels, motels and cottages a further
competitive advantage over their privately owned counterparts,

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky:

That the Department of Conservation is urged to continue its
policy of permitting the public to use the beach and swimming areas
of the state parks without making a charge therefor.

Representative McCallum moved adoption of HR 6. Adopted.

Representative Breathitt, seconded by Representative Billington,
moved that HB 1 be made a Special Order for Tuesday, April 10, 1956,
at 10:00 A.M.

On roll call, the vote was yeas 48—Anderson, Barnum, Baum-
gardner, Blue, Breathitt, Breckinridge, Bridgers, Buchanan, Caudill,
Cornett, Embry, Farmer, Freeman, Gay, Griffin, Grundy, Hadden,
Hahn, Hawkins, Heskamp, Heyburn, Highland, Hinkle, Hislope, Hols-
claw, D. W. Howard, Jennings, Lambert, Lowman, Mackey, McCal-
lum, McFadden, McKinney, Miller, Moore, Mullins, Murphy, Nunn,
Ockerman, Pollitte, Ray, R. Reid, Sr., Reynolds, Thomas, Walsh, A. W.
Wells, Williamson, Young. Nays 48—Bates, Beshear, Billington, Burnley,
Bush, Carter, Casey, Conrad, Cottengim, Davidson, Davis, Day, Dunsil,
Everett, Flanery, Greene, Grigsby, Gullette, Harris, Hill, Hilton, C. S.
Howard, Isler, Johnson, Kubale, Martin, Melton, Morgan, Newsom,
Parrish, Peace, Qualls, Ratcliffe, Rayburn, V. Reed, H. V. Reed, Saylor,
Searcy, Sloan, Stith, Thompson, Tinsley, Wathen, Weintraub, L. B.
Wells, Wilson, Wirsch, Fitzpatrick.

Motion on HB 1 was rejected.

Orders of the Day

On roll call, the vote was yeas 75 — Bates, Beshear, Billington,
Blankenship, Blue, Buchanan, Burnley, Bush, Carter, Casey, Caudill,
Conrad, Cornett, Cottengim, Davidson, Davis, Day, Dunsil, Embry,
Everett, Fitzpatrick, Flanery, Freeman, Gay, Greene, Griffin, Grigsby,
Grundy, Gullette, Hahn, Harris, Hawkins, Heskamp, Highland, Hill,
Hilton, Hinkle, C. S. Howard, Isler, Jennings, Johnson, Kubale, Low-
man, Mackey, Martin, McCallum, McFadden, McKinney, Melton,
Morgan, Mullins, Newsom, Nunn, Ockerman, Parrish, Peace, Pollitte,
Qualls, Ratcliffe, Rayburn, V. Reed, H. V. Reid, R. Reid, Sr., Saylor,
Searcy, Sloan, Stith, Thompson, Tinsley, Wathen, Weintraub, L. B.
Wells, Wilson, Wirsch, Young. Nays—0.

HB | was passed and the title agreed to.

April 4 HOUSE OF REPRESENTATIVES 221

Representative Morgan moved that the vote by which the said
bill was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Heyburn, seconded by Representative Caudill,
moved that the rules be suspended for the purpose of making a motion.
Rejected.

Representative Ockerman moved that names of absentee voters
on HB I be called. Agreed.

On roll call, the vote was yeas 75—Bates, Beshear, Billington,
Blankenship, Blue, Buchanan, Burnley, Bush, Carter, Casey, Caudill,
Conrad, Cornett, Cottengim, Davidson, Davis, Day, Dunsil, Embry,
Everett, Fitzpatrick, Flanery, Freeman, Gay, Greene, Griffin, Grigsby,
Grundy, Gullette, Hahn, Harris, Hawkins, Heskamp, Highland, Hill,
Hilton, Hinkle, C. S. Howard, Isler, Jennings, Johnson, Kubale, Low-
man, Mackey, Martin, McCallum, McFadden, McKinney, Melton,
Morgan, Mullins, Newsom, Nunn, Ockerman, Parrish, Peace, Pollitte,
Qualls, Ratcliffe, Rayburn, V. Reed, H. V. Reid, R. Reid, Sr., Saylor,
Searcy, Sloan, Stith, Thompson, Tinsley, Wathen, Weintraub, L. B.
Wells, Wilson, Wirsch, Young. Nays—0.

Representative Morgan moved that the vote by which the said
bill was passed be reconsidered and said motion be laid on the table.
Agreed.

HR 4 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 60—Barnum, Bates, Baumgardner,
Beshear, Billington, Blankenship, Breathitt, Breckinridge, Buchanan,
Burnley, Bush, Carter, Casey, Conrad, Cornett, Cottengim, Day, Dun-
sil, Everett, Flanery, Grigsby, Grundy, Gullette, Hadden, Hahn, Harris,
Hawkins, Heyburn, Hilton, Hinkle, C. S$. Howard, D. W. Howard,
Isler, Johnson, Mackey, Martin, McFadden, McKinney, Melton, Miller,
Moore, Morgan, Mullins, Parrish, Peace, Qualls, Ratcliffe, Ray, Ray-
burn, V. Reed, H. V. Reid, Searcy, Sloan, Stith, Thompson, Tinsley,
Walsh, A. W. Wells, Wirsch, Young. Nays 1—Davidson.

HR 4 was passed and the title agreed to.

Representative Morgan moved that the vote by which said reso-
lution was passed be reconsidered and said motion be laid on the
table. Agreed.

Recess

Representative Morgan moved that the House do now recess until
3:00 P.M. Agreed.

At the appointed hour, the Speaker resumed the Chair and called
the House to order.

222 JOURNAL OF THE April 4

Senate Message

Senate message announcing passage of SR 4, SR 5, and SR 6.
Ordered that said resolutions be referred. :

Recess
Representative Morgan moved that the House do now recess for
15 minutes for a Rules Committee Meeting. Agreed.
At the appointed hour, the Speaker resumed the Chair and called
the House to order.
Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.

Report of Committee
Committee on Rules reported SR 5 and SR 6 with the expression
of opinion that the same should pass. Read at length for the first time
and ordered placed in the Calendar.

SR 5: A CONCURRENT RESOLUTION appropriating money to
the Department of Finance for restoring the Executive Mansion and
repairing and replacing the furnishings in the Executive Mansion.

WHEREAS, the furniture and furnishings within the Executive
Mansion are in a state of disrepair, and it is necessary to replace many
items; and

WHEREAS, the Executive Mansion is the property of the people
of the Commonwealth of Kentucky; provided by them for the residence
of their elected Chief Executive Officer; and

WHEREAS, the people of the Commonwealth of Kentucky expect
the Executive and Legislative Departments of State Government to
take necessary action to preserve their investment in the Executive
Mansion, as well as other property owned by the State and its people,

NOW, THEREFORE,

Be it resolved by the General Assembly of the Commonwealth
of Kentucky:

There is hereby appropriated to the Department of Finance for
the 1956-1957 fiscal year the sum of twenty five thousand dollars
($25,000) to be used for restoring the Executive Mansion and for re-
pairing and replacing furniture and furnishings in the Executive Man-
sion.

SR 6: A CONCURRENT RESOLUTION appropriating money to
Elections—For County Expenses (state share), and declaring an emer-
gency. :

WHEREAS, there is not sufficient money appropriated to the

account for the State’s share of county election expenses due to the
change in the date of the primary election; and,

April 4 HOUSE OF REPRESENTATIVES 223

WHEREAS, the counties do not have funds available to pay
election expenses due to the change in the primary election date;

NOW, THEREFORE,

Be it resolved by the General Assembly of the Commonwealth
of Kentucky:

Section 1. There is hereby appropriated to the Elections —
County Expenses (state share) account the sum of $82,500.00 The
county treasurer in each county shall certify to the Department of
Finance the number of precincts in his county. Upon proper certifica-
tion by the county treasurer of the number of precincts in his county,
the Department of Finance shall advance to each county treasurer the
sum of twenty dollars per precinct.

Section 2. Whereas there is an immediate need for money to be
made available in order that it can be advanced to county treasurers
for primary election expenses, an emergency is hereby declared to
exist and this resolution shall take effect upon its passage and ap-
proval by the Governor.

Representative Buchanan gave a report from the Insurance Com-
mittee Investigation.

Representative Morgan moved to adjourn until 1:00 P.M., April
5th. Agreed.

224 JOURNAL OF THE April 5

THURSDAY, APRIL 5, 1956
SEVENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend H. Glenn Stephens of the South Frankfort
Presbyterian Church, Frankfort.

The roll was called. All present except Anderson, Barnum, Bil-
lington, Breathitt, Breckinridge, Bridgers, Buchanan, Casey, Davidson,
Farmer, Gullette, Harris, Heskamp, Heyburn, Hill, Holsclaw, Durham
W. Howard, Isler, Kubale, Martin, McCallum, Melton, Moore, Murphy,
Nunn, Nunnelley, Ockerman, Qualls, Ray, Rayburn, John B. Reed,
Tanner, Thomas, Tinsley, Walsh, Weintraub, and Williamson, who
were granted leaves of absence on motion of Representative Morgan.

Reading of the Journal for April 4, 1956, dispensed with and the
same approved on motion of Representative Lowman.

Introduction of Resolution
HR 7, by Representative Wirsch: A HOUSE RESOLUTION
memorializing the Congress of the United States to take or cause to be
taken such action as may be required to proceed with and complete
the proposed Falmouth Dam Project on the Licking River.
Ordered referred to Rules Committee.

Calendar
SR 5 and SR 6 were taken from the Calendar and read at length
for the second time. Ordered placed in Orders of the Day.

Representative Morgan moved to adjourn until 10:00 A.M., April
6th. Agreed. :

April 6 HOUSE OF REPRESENTATIVES 225

FRIDAY, APRIL 6, 1956
EIGHTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend E. W. Baxter of the Episcopal Church,
Frankfort.

The roll was called. All present except Barnum, Blue, Buchanan,
Cornett, Everett, Farmer, Greene, Grundy, Harris, Heskamp, Hols-
claw, Durham W. Howard, Lambert, Lowman, Martin, Melton, Mur-
phy, Nunnelley, Qualls, Rayburn, Vernon Reed, Howard V. Reid,
Tanner, Weintraub, and Williamson, who were granted leaves of ab-
sence on motion of Representative Morgan.

Reading of the Journal for April 5, 1956, dispensed with and the
same approved on motion of Representative Isler.

Orders of the Day

SR 5 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 60—Bates, Baumgardner, Beshear,
Billington, Blankenship, Breathitt, Breckinridge, Bridgers, Burnley,
Bush, Carter, Casey, Caudill, Conrad, Davis, Day, Dunsil, Embry,
Fitzpatrick, Flanery, Freeman, Gay, Griffin, Grigsby, Gullette, Hadden,
Hahn, Hawkins, Highland, Hill, Hilton, Hinkle, C. S$. Howard, Isler,
Jennings, Johnson, Kubale, Mackey, McCallum, McKinney, Miller,
Moore, Morgan, Mullins, Newsom, Parrish, Peace, Ratcliffe, Ray,
J. B. Reed, R. Reid, Sr., Saylor, Searcy, Stith, Thompson, Wathen, A. W.
Wells, L. B. Wells, Wilson, Wirsch. Nays—0.

SR 5 was passed and the title agreed to.

Representative Morgan moved that the vote by which the said
resolution was passed be reconsidered and said motion be laid on the
table. Agreed.

SR 6 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed.

Representative Thompson and Conrad moved to amend SR 6 as
follows:

Amend printed copy of SR 6 on page I, section 1, line 2, by delet-
ing the figure $82,500.00 and substituting in lieu thereof the following:
“$165,000 to be used in reimbursing the county treasury of each county
for a portion of the expense of conducting the primary election to be
held on May 29, 1956”.

Amend printed copy of SR 6 on page 2, section 1, line 7, by
deleting the word “twenty” and substituting in lieu thereof the word

“forty”.

226 JOURNAL OF THE April 6

Recess
Representative Morgan moved that the House do now recess for
20 minutes for Senate debate. Agreed.
At the appointed hour, the Speaker resumed the Chair and called
the House to order.
Amendments No. 1 and No. 2 on SR 6 were adopted. SR 6 as
amended was read at length for the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 64—Anderson, Bates, Baumgardner,
Beshear, Billington, Blankenship, Breathitt, Breckinridge, Bridgers,
Buchanan, Burnley, Bush, Carter, Casey, Caudill, Conrad, Cottengim,
Davidson, Davis, Day, Embry, Flanery, Gay, Greene, Griffin, Grigsby,
Hadden, Hahn, Hawkins, Heyburn, Highland, Hilton, Hislope, Isler,
Jennings, Johnson, Mackey, McFadden, Miller, Moore, Morgan, Mul-
lins, Newsom, Ockerman, Parrish, Peace, Pollitte, Ratcliffe, Ray, J. B.
Reed, V. Reed, R. Reid, Sr., Sloan, Thomas, Thompson, Tinsley, Walsh,
Wathen, A. W. Wells, L. B. Wells, Williamson, Wilson, Wirsch, Young.
Nays—0.

SR 6 was passed and the title agreed to.

Representative Morgan moved that the vote by which said resolu-
tion was adopted as amended be reconsidered and said motion be laid
on the table. Agreed.

Senate Message

Senate message announcing passage of HB 1 with amendment,

HR 4, and SR 12. SR 12 read by Clerk.

Orders of the Day

Representative Morgan moved that the House concur in the fol-
lowing Senate amendment to HB 1:

Amend printed copy of HB 1 on page 3, section 8, lines 50 and 51
“by striking from line 50 the figures $233,500 and from line 51 the
figures $234,700 and substituting therefor the figures $248,500 and
$249,700 respectively”. Adopted.

Representative Morgan moved the Previous Question. Agreed.

On roll call, the vote was yeas 65—Anderson, Bates, Beshear, Bil-
lington, Blankenship, Breathitt, Breckinridge, Buchanan, Burnley,
Bush, Carter, Casey, Caudill, Conrad, Cottengim, Davidson, Davis,
Day, Dunsil, Embry, Flanery, Gay, Greene, Griffin, Grigsby, Gullette,
Hahn, Hawkins, Highland, Hill, Hilton, Hinkle, Hislope, C. S. Howard,
Isler, Jennings, Johnson, Kubale, Mackey, McCallum, McFadden,
Moore, Morgan, Mullins, Newsom, Ockerman, Parrish, Peace, Pollitte,
Ratcliffe, J. B. Reed, V. Reed, R. Reid, Sr., Reynolds, Saylor, Searcy,
Sloan, Stith, Thompson, Tinsley, Wathen, L. B. Wells, Wilson, Wirsch,
Young. Nays 1—Williamson.

HB 1 was passed and the title agreed to.
Representative Morgan moved that the vote by which said bill

April 6 HOUSE OF REPRESENTATIVES 227

was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved the House adopt the report of In-
surance Committee Investigation. Agreed.

Report
Foreword

This Committee was created pursuant to Senate Resolution No. 6,
the House of Representatives concurring, and consists of seven mem-
bers of the House of Representatives, appointed by the Speaker of
the House, and seven members of the Senate, appointed by the Presi-
dent Pro Tem, with an Assistant Attorney General as counsel.

An extension of time was granted February 14, 1956, by Senate
Resolution No. 69, the House of Representatives concurring, as the
Committee was unable to complete its work during the Regular
Session of the 1956 General Assembly.

The purposes of this Committee were:

1. To inquire into and investigate the affairs, activities, and
management of the Kentucky Department of Insurance, and the con-
duct and acts of any and all persons having or who have had transac-
tions, dealings or contracts, directly or indirectly, with the Department
or any of its officers or employees.

2. To determine the cause of the failure of certain insurance
companies in Kentucky, other than life, that have failed causing loss
to Kentucky insurers and agents.

Activities of the Committee

The first meeting of the Committee was held on January 17,
1956, in Room 102, of the Capitol Building at Frankfort, Kentucky.
Numerous witnesses, including Mr. Cad Thurman, the present Insur-
ance Commissioner, were subpoenaed in order to determine what in-
cidents or acts of individuals should be investigated by the Committee.
As a result of this hearing the following specific topics were formulated
and set up for a further investigation:

1. That eleven foreign insurance companies were admitted to do
business within the Commonwealth during the month of De-
cember, 1955, by the Department; that this was an unusually
great number to be admitted during such a short period of time.

2. That the failure of the Louisville Fire and Marine Insurance
Company, while doing business within this state, and its suc-
cessors, the Inland Empire Insurance Company, was a result of
certain individuals who controlled the company manipulating
and causing to be inflated its stock and other capital assets.

3. That political pressure was brought to bear upon former
Commissioner of Insurance, Syl Goebel, by certain public officials.
and politicians residing within the Commonwealth in order to

228 JOURNAL OF THE April 6

halt an investigation of the General American Insurance Compan

of San Antonio, Texas, by Commissioner Goebel in 1954; that
this company failed at.a loss to Kentucky insurers and agents;
that an investigation, when proposed by the Commissioner of the
Insurance Department, would have disclosed the company’s
financial condition thereby avoiding or minimizing any loss to
Kentucky policy holders, agents and claimants.

Several insurance experts also testified at this hearing in regard
to the present insurance setup within the state, the insurance business
in general, and made recommendations as to possible changes in the
present insurance laws.

On Monday, January 23, 1956, at 3 o’clock p.m., in the Governor's
conference room, the Capitol, Frankfort, Kentucky, another meeting of
the Committee was held. Witnesses were subpoenaed and much
testimony was taken in regard to the Insurance Department, previous
acts of the former Commissioner, the Insurance Department and the
existing laws under which it operates, and the presence of political in-
fluence having been brought to bear upon the former Commissioner to
halt proposed investigations in the past. Testimony was also heard in
regard to proposed changes of insurance laws.

In February, 1956, a Subcommitte was appointed by the Chairman
to go to Texas to further investigate whether the General American
Insurance Company, San Antonio, Texas, had hired certain Kentucky
public officials and individuals to halt an investigation of this com-
pany’s financial condition while it was doing business within the state
of Kentucky. This Subcommittee, while in Texas, interviewed various
persons connected with the General American Company, took deposi-
tions, secured many exhibits relevant to the question and compiled a
record which was subsequently turned over to the Committee which
studied and discussed same at an executive session held February 8,
1956, in Room 102, the Capitol, Frankfort, Kentucky.

On February 24, 1956, another meeting of the Committee was
held in the Capitol at Frankfort, Kentucky. Numerous witnesses were
subpoenaed, including some who had testified at former hearings.
Testimony was taken and upon completion of said hearing, the Com-
mittee held an executive session to consider and discuss all the evi-
dence compiled during the course of the investigation.

Upon reviewing the record, it was decided that another meeting
should be held and that the Hon. Louis Cox, Attorney, and the Hon.
Earl Wilson, Attorney, should be called before the Committee and
their testimony taken, as both were involved in the court proceedings
placing the Louisville Fire and Marine Insurance Company in receiver-
ship and Inland Empire Insurance Company being appointed its suc-
cessor.

This session was held March 6, 1956, and upon conclusion, in an
executive session, it was decided by the Committee that a final report

April 6 HOUSE OF REPRESENTATIVES 229

be drawn and submitted as required by the resolution creating the
Committee.

SUMMARY OF EVIDENCE HEARD AND
COMPILED BY THE COMMITTEE

At the first meeting of the Committee, the present Commissioner
of Insurance, Mr. Cad Thurman, testified in regard to the present
insurance set up and upon certain incidents which had been brought
to the attention of the Committee concerning the previous administra-
tion of Commissioner Syl Goebel. The chief topic at this meeting was
the admission of the eleven insurance companies during the month of
December, 1955. Commissioner Thurman stated that although this was
a greater number of companies than would normally be admitted
during such a short period of time, in his opinion, the admittances of
said companies fully complied with all the requirements of the De-
partment of Insurance under the present laws, and that there was no
evidence of any wrongful conduct on the part of any official or em-
ployee of the Department in regard to the admittance of said com-
panies, past or present. Commissioner Thurman was also interrogated
in regard to the failure of the Louisville Fire and Marine Insurance
Company and its successor, the Inland Empire Insurance Company.
From Commissioner Thurman’s testimony, and the testimony of other
individuals having knowledge of the activities of the Company, it
appears that it is impossible for this Committee, due to lack of time and
jurisdiction, to pinpoint, or to obtain a clear and concise picture of the
basic causes of the Company’s failure. It was further pointed out by
Commissioner Thurman and other witnesses that the scope of the
Louisville Fire and Marine Insurance Company and Inland Empire
was complex, extending into several states and territories with capitali-
zation and management being vested in various groups and individuals
beyond the jurisdiction of this Committee. There was further evidence,
although not probative in nature, that certain groups or individuals
connected with the Louisville Fire and Marine Insurance Company
and its successor the Inland Empire for their own personal gain ma-
nipulated and caused to be watered and shown at inflated values the
capital stock and assets of these companies. And while this Committee
is unable to definitely establish this wrongful conduct as the primary
cause of failure, it is of the opinion that further investigation of this
matter by the proper authorities would be warranted. Commissioner
Thurman, and other witnesses, experts in the field of insurance, im-
pressed upon the Committee that our present insurance laws, as
adopted in 1950, are considered by insurance authorities as a model
code and has subsequently been adopted by other states. However,
they further pointed out that certain changes in these laws would
further strengthen the Department of Insurance, and they made cer-
tain recommendations in regard thereto, said recommendations being
set out under the heading of Recommendations ‘of the Committee in
this report.

280 JOURNAL OF THE April 6

On Monday, January 23, 1956, at 3:00 p.m., the former Com-
missioner of Insurance, Hon. Syl Goebel, testified in regard to certain
incidents and acts of individuals which had occurred during his ad-
ministration. These acts and incidents had been brought to the atten-
tion of the Committee during the former hearing and by intensive
investigation by this Committee. Commissioner Goebel was inter-
rogated in regard to the eleven companies being admitted during the
month of December, 1955, and testified regarding same as follows:
That due to illness in the family in August, of 1955, he was forced to
be away from his office until the latter part of November, 1955, during
this period of time many pending applications accumulated in the
office; that upon his return to the office, in the latter part of Novem-
ber, he immediately began checking said applications and attempting
to clear as many as possible during the remainder of his administra-
tion; that the proper checks were made to insure proper qualifications
under our laws, and that due to the mandatory provision of our law
in regard to compulsory admittance, if the company seeking admit-
tance is properly qualified, he had no other alternative than to admit
said companies.

Commissioner Goebel testified that, according to the records of
the Department of Insurance, the Louisville Fire and Marine Insurance
Company qualified properly under the laws of the Commonwealth of
Kentucky prior to his appointment; that their annual reports were
reviewed each year; that nothing unusual in regard to the financial
condition of the Company was shown or revealed by the reports re-
quired under our present laws; that he first learned of the shaky fi-
nancial condition of the Louisville Fire and Marine Insurance Company
on December 9, 1954; that he immediately took the required steps
necessary to protect the Kentucky policy holders, agents, and claim-
ants by reporting to the Governor, requesting special counsel, and
petitioning the Franklin Circuit Court to place the Company under
conservatorship or rehabilityship. Upon the Company’s being placed
in conservatorship, negotiations were begun and offers requested for
this Company. On December 22, 1954, the Court rendered a decision in
the case accepting the offer of the Inland Empire Insurance Company;
that the Inland Empire Insurance Company by information furnished,
as required by the insurance laws, indicated that this Company was
sound; that an investigation of this Company other than required by
the insurance laws would have taken approximately two years; that
the Court approved the transaction and as the Company had properly
qualified, he, as Commissioner, had no alternative other than to abide
by the decision of the Court. It was further pointed out to the Com-
mittee by Commissioner Goebel that during the year 1954, the Louis-
ville Fire and Marine Insurance Company had suffered tremendous
losses due to hail, and from the Hazel hurricane on the East coast in-
volving destruction of insured property under extended coverage.

On March 6, 1956, at a hearing held by the Committee, additional

April 6 HOUSE OF REPRESENTATIVES 231

evidence was obtained in regard to the Louisville Fire and Marine
Insurance Company and its successor the Inland Empire Insurance
Company, by the testimony of the Hon. Louis Cox, of Frankfort,
Kentucky, and the Hon. Earl Wilson of Louisville, Kentucky, at-
torneys.

Mr. Wilson was retained by, and represented, the Inland Empire
Company and testified in regard to the court proceedings wherein the
offer of the Inland Empire Insurance Company was accepted and ap-
proved by the Franklin Circuit Court in the conservatorship proceed-
ings resulting from the failure of the Louisville Fire and Marine In-
surance Company.

Mr. Cox testified that he was retained as special counsel by the
former Commissioner of Insurance, Hon. Syl Goebel, to represent him
as conservator and to handle the litigation resulting from the failure
of the Louisville Fire and Marine. He testified in detail as to the entire
proceedings and filed with the Committee the various orders and
final judgment of the Court in disposing of the matter.

Commissioner Goebel further testified that during his ad-
ministration, no public official of the Commonwealth, nor any in-
dividual residing therein, attempted to bring political pressure to bear
upon him in order to prevent full compliance with any law or other
matter regulated by the statutes governing the insurance department;
that he knew of no act by any official, employee, or individual, con-
nected with the insurance department, anes or indirectly, which
admitted to any wrong doing. This testimony was substantiated or
corroborated by other witnesses who had been linked, by accusation,
rumor, or innuendo, to activities occuring within the Department which
was alleged to have amounted to wrongful conduct or bad faith. The
former commissioner further testified in regard to our present insur-
ance laws and stated that the code under which we operated was
deemed by insurance authorities to be a model one, but that some
changes could further strengthen the Department, and he made recom-
mendations concerning these changes which are fully set out under the
subsection “Recommendations of the Committee.” He further pointed
out that there are approximately seven hundred insurance companies
licensed to do business in the State of Kentucky, which involves the
writing of $200,000,000.00 in premiums, and in addition, the Depart-
ment collects between $4,000,000.00 and $5,000,000.00 annually in
taxes that are part of the general fund.

In early February, 1956, a sub-committee went to Texas for the
purpose of investigating reports and rumors to the effect that official
proceedings in Texas had disclosed indications of impropriety in the
conduct of the Kentucky Insurance Department and other individuals
residing in Kentucky. That committee conferred with Attorney General
John Ben Sheppard, of the State of Texas, and at a conference in the
Attorney General's Office was advised of the shaky condition of many
Texas insurance companies and the steps being eles to correct same.

232. JOURNAL OF THE April 6

Attorney General Sheppard assigned an assistant attorney general to
work with the committee during the course of its investigation within
that State. A three-hundred page complaint had been filed by Mr.
J. D. Wheeler, the receiver of the General American Insurance Com-
pany, alleging that certain officials of the Department of Insurance of
Texas had been guilty of conduct which amounted to a criminal con-
spiracy. It was further alleged that the officers and directors of the
General American Casualty Company had improperly influenced the
insurance commissioner of Kentucky through various individuals resid-
ing within the Commonwealth.

The depositions of the attorneys for the receivership were taken
by the Committee, and many cahibits were obtained relevant to the
Company. Included were two recorded phone conversations between
the representative of General American Insurance Company, Mr.
Connie Suchard, who had been sent by the Company to Kentucky
for the purpose of straightening out the claims set up, and two Com-
pany officials at the home office. In these conversations, Mr. Suchard
advised these officials that he had contacted certain politicians and
public officials in Kentucky and had “fixed” the situation.

The Commissioner of the State Insurance Department of Texas,
Mr. Byron Saunders, was also interviewed in regard to this matter.
The allegations made as to any irregularities here in Kentucky were
found by the Committee to be based on unsworn and self-serving
declarations of Mr. Suchard and the recorded phone conversations as
set out above. When the sworn testimony of Suchard was taken by
deposition in the judicial proceedings now pending in the State of
Texas, he contradicted and refuted these unsworn statements and
phone conversations.

At all the hearings, experts in the field of insurance testified in
regard to the insurance code of the Commonwealth of Kentucky. Many
changes were suggested and recommendations made. These recom-
mendations are contained herein under the title “Recommendations to
Committee”. :

Findings of the Committee

As a result of the hearings and evidence compiled, and after ex-
tensive investigation and a thorough study and examination of the
record as a whole, this Committee finds the following facts to exist:

1. That no foreign insurance companies now doing business:
within the state of Kentucky have been admitted without the
proper investigation and safeguards being made by the Depart-
ment of Insurance, as required by the present laws.

2. That in general, insurance companies doing business
within. the Commonwealth are operating on a sound financial
“basis. | ot ee

3... That many Texas insurance companies are unsound and
great care and intensive investigation should be taken before any

April 6 HOUSE OF REPRESENTATIVES 233

Texas insurance company is admitted to do business within this
state.

4, That the Insurance Department, at present as well as in
the past, is and has, operated in accordance with insurance laws
governing said Department and no evidence of any wrongful
conduct on the part of any official or employee has been dis-
covered by this Committee during the course of this investigation.

5. That no competent evidence was found whereby any
public official of the state of Kentucky or any individual residing
therein, brought about or caused to be brought about political
pressure to bear on any official or employee of the Department
of Insurance, to enhance special interests or to preclude the
Department from performing its duties in compliance with in-
surance laws of the state.

6. That it is impossible for the Committee to pinpoint the
basic causes of the failure of the Louisville Fire and Marine Insur-
ance Company and its successor the Inland Empire Insurance
Company, as their operations were complex, extending into sev-
eral states and territories with capitalization and management
being vested in various groups and individuals beyond the juris-
diction of this Committee. That further investigation of this
matter should be made by the proper authorities.

Recommendations of the Committee

Your Committee has conducted this investigation with the thought
that when an insurance company is organized and licensed with the
State of Kentucky to do business, the responsibility and obligations
are Gnquestonably a sacred trust. An insurance company should be as
Caesar's wife “beyond reproach.”

With the foregoing as a background, the Committee makes the
following recommendations:

1. Kentucky policyholders and claimants should be protected
against loss and insolvency of a company by one or more of the
following methods:

(a) Enactment by the General Assembly of an insolvency
law under which a percentage of each premium not over a
fraction of 1% would be placed in a pool, and should any
company become insolvent, then all loss to Kentucky
policy holders and claimants be paid from the fund.

(b) That Federal legislation be enacted providing for pro-
tection to policy holders and claimants similar to that pro-
vided for depositors in banks under the Federal Depository
Insurance Corporation Act.

2. Successful operation of a foreign company for a minimum of
five years in its home state before being eligible to doing business
in Kentucky. If Kentucky had had such a statute, the General

234

JOURNAL OF THE April 6

American Casualty Company would not have been eligible for
admission.

3. Higher requirements of capital and surplus with a mandatory
minimum requirement of five-hundred-thousand dollars ($500,-
000.00).

4, The Department of Insurance should be required to approve
all re-insurance contracts entered into by all companies doing
business within the State.

5. That the Attorney General of the United States be requested
to instruct the proper Federal government agency to investigate
the operations of Stewart Hopps, New York City, New York, and
Lowell Birrell, San Francisco, California, and more particularly
to an alleged criminal conspiracy in violation of the Federal laws
entered into by them and other individuals connected either di-
rectly or indirectly with the operation of said companies.

6. It is the function of the insurance department to supervise
approximately seven-hundred companies doing business within
the state involving the writing of over $200,000,000.00 in pre-
miums, the collection of between $4,000,000.00 and $5,000,000.00
annually in taxes. This necessitates:
(a) That trained and competent personnel, free from the
feeling of insecurity in their jobs be employed by the de-
partment;
(b) The budget of the insurance department should be in-
creased to provide for employment of additional trained and
competent personnel to supervise the business of the de-
partment and their salaries should be increased in such
amount as is commensurate with their training and ability.
7. The present tax paid on insurance premiums should be in-
creased from 2% to 3%.
8. That the General Assembly recommend to the Congress of
the United States that an investigation be made in order to
determine whether the respective states can adequately regulate
insurance, or whether the Federal Government should enact legis-
lation governing insurance companies engaged in business
amounting to or affecting interstate commerce.

CONCLUSION
Your Committee recommends that legislation be proposed to

carry out the recommendations contained herein with the hope that
the General Assembly of the Commonwealth of Kentucky will enact
same into law.

That copies of this report be given to the Hon. A. B. Chandler,

Governor of Kentucky, Hon. Harry Lee Waterfield, Lieutenant Gov-
ernor, Hon. Timothy Fitzpatrick, Speaker of the House, and that
same be sent to the Attorney General of the United States, the Presi-

April 6 HOUSE OF REPRESENTATIVES 235

dent and Secretary of the U. S. Senate, and the U. S. Senators of Ken-
tucky, the Speaker and Clerk of the House of Representatives, and
the U. S. Congressmen from Kentucky.
This report submitted to the Committee,
this the 8rd day of April, 1956, and adopted
by the undersigned members of the Com-
mittee:
(SIGNED):
Leon J. Shaikun, Chairman
C. W. Buchanan, Vice Chairman
Senate members:
Wayne W. Freeman
John W. Willis
Lloyd M. Greene
E. J. Kelly
Denver C. Knuckles
Albert H. Thomason
House members:
James W. Lambert
George F. Harris
Vernor Cottengim
Harry M. Caudill
Owen Billington
Morris Weintraub

Representative Morgan moved that the House concur in SR 12.

SR 12: A CONCURRENT RESOLUTION providing for sine die
adjournment of the Third Extraordinary Session of the General As-
sembly, 1956.

Be it resolved by the Senate of the Commonwealth of Kentucky,
the House of Representatives concurring therein:

That when the Senate and House of Representatives adjourn on
April 6, 1956, they do adjourn sine die.

SR 12 was adopted.”

Report on Enrolled Bills
Committee on Enrollment reported that HB 1 had been examined
and found correctly enrolled. Said bill read at length, compared, and
signed in open session by the Speaker. Ordered delivered to the
Senate.

HB 1 delivered, signed by President of the Senate. Ordered de-
livered to the Governor.
Recess
Representative Morgan moved the House do now recess for 15
minutes, Agreed.

236 JOURNAL OF THE April 6

At the appointed hour, the Speaker resumed the Chair and called
the House to order.
Report on Enrolled Bills
Committee on Enrollment reported that SR 5 and SR 6 had been
examined and found correctly enrolled. Said resolutions were read at
length, compared, and signed in open session by the Speaker. Ordered
delivered to the Senate.

: Committee to Wait on Governor

Representative Morgan moved that the Speaker appoint a Com-
mittee to join a similar Committee from the Senate to wait upon the
Governor to notify him that the business of the House had been
concluded and to inquire if he has further business to communicate.
Agreed.

The Speaker appointed the following committee: Representatives
Howard V. Reid, Hill, Flanery, Greene, Jennings, Caudill and Qualls.

Representative Hill, on behalf of the Committee, reported that the
Governor had been informed of the message from the House and the
Governor consented to the adjournment of this Extraordinary Session.
The Governor instructed the Committee to notify the members of his
call for the Fourth Extraordinary Session, and to deliver the official
proclamation calling for such Fourth Extraordinary Session.

Representative Morgan moved that the House adjourn sine die.
Agreed.

The Journal of the House has been read, compared and approved.
The House adjourned sine die.

APPROVED:

(Signed) THOMAS P. FITZPATRICK, Speaker
ATTEST:
JAMES C. CUBBAGE, Chief Clerk

JOURNAL

OF THE

House of Representatives
OF THE

COMMONWEALTH OF KENTUCKY

FOURTH EXTRAORDINARY SESSION OF 1956

Held in the State Capitol in the Capital City of Kentucky, at
Frankfort, in the Year of Our Lord 1956 and
in the One Hundred and Sixty-Fourth
Year of the Commonwealth

Begun on the Sixth Day of April, 1956, and Adjourned Sine Die
on the Twenty-seventh Day of April, 1956

JOURNAL OF THE SESSION
OF THE
HOUSE OF REPRESENTATIVES
OF THE COMMONWEALTH OF KENTUCKY

FOURTH EXTRAORDINARY SESSION OF 1956

FRIDAY, APRIL 6, 1956
FIRST LEGISLATIVE DAY

At an Extraordinary Session of the General Assembly of the Com-
monwealth of Kentucky, held at the Capitol in the City of Frankfort,
and begun on April 6, 1956, and in the one hundred and sixty-fourth
year of the Commonwealth, in compliance with a proclamation issued
by the Governor of the Commonwealth, the House of Representatives
was called to order by the Honorable Thomas P. Fitzpatrick, Speaker
of the House of Representatives.

The Clerk read the following proclamation:

I, THELMA L. STOVALL, Secretary of State for the Common-
wealth of Kentucky, do certify that the foregoing writing has been
carefully compared by me with the original record thereof, now in my
official custody as Secretary of State and remaining on file in my office,
and found to be a true and correct copy of the Proclamation by the
Governor of the Commonwealth of Kentucky, proclaiming the con-
vening of the General Assembly of Kentucky in Extraordinary Session
at the seat of government at Frankfort, Kentucky, at 2:00 P.M. on
Friday, April 6, 1956.

IN WITNESS WHEREOF, I have hereunto set
my hand and affixed my official seal.
Done at Frankfort this 6th day of April, 1956
(Signed) THELMA L. STOVALL
(SEAL) Secretary of State; Commonwealth of Kentucky

April 6

HOUSE OF REPRESENTATIVES 239

PROCLAMATION BY THE GOVERNOR OF THE

COMMONWEALTH OF KENTUCKY

TO ALL TO WHOM THESE PRESENTS SHALL COME:

WHEREAS,

NOW, THE

the General Assembly of the Commonwealth of Ken-
tucky, in its Third Extraordinary Session, did enact
“AN ACT relating to appropriations for the operation,
maintenance, support and functioning of the Government
of the Commonwealth of Kentucky and its various of-
ficers, departments, boards, institutions, subdivisions,
agencies and other state supported activities;” and

the expenditures required under the terms and provisions
of the foregoing Act require that additional revenue be
levied in order that the budget of the Commonwealth of
Kentucky for the next biennium be in balance; and

certain other needs of the Commonwealth, hereinafter
included in this call, have come to the attention of the
Governor;

REFORE, in order that the Commonwealth may operate
on a balanced budget during the next biennium, that the
following needs of the government of the Commonwealth
be considered by the legislature, and according to the
power vested in me by the Constitution and Statutes of
Kentucky to convene the General Assembly in extra-
ordinary session, I do hereby issue this, my proclamation,
convening the General Assembly of Kentucky in Extra-
ordinary Session at the seat of Government at Frankfort,
Kentucky at 2:00 p.m. on Friday, April 6, 1956, for the
sole purpose of considering the following subjects:

(1) .To consider and enact legislation relating to
revenue and taxation sufficient to meet the needs and
requirements of the Commonwealth of Kentucky for the
biennium beginning July 1, 1956 and ending June 30,
1958, as required by House Bill No. 1 of the Third Extra-
ordinary Session of the 1956 General Assembly.

(2) To consider and enact legislation relating to
unemployment compensation.

(8) Reasonable municipal annexation procedures
having due regard for industrial development.

(4) Escheats. °

(5) Appropriations for administration of revenue
measures not provided for in the general appropriation
bill, Third Extraordinary Session, General Assembly
of 1956.

240 JOURNAL OF THE April 6

You will, therefore, in accordance with this procla-
mation, assemble in Extraordinary Session at the seat of
government at Frankfort, Kentucky, on the day and date
above written, to consider the subjects herein mentioned
and only said subjects.

Done at Frankfort, Kentucky, this the 6th day of

April in the year of our Lord, one thousand nine
hundred and fifty-six, and in the year of the
Commonwealth, the one hundred and sixty-
fourth.

(Signed) A. B. CHANDLER, Governor
(SEAL)
(Signed) Thelma L. Stovall
Secretary of State

Prayer by the Reverend E. W. Baxter of the Episcopal Church,
Frankfort.

The roll was called. All present except Barnum, Blue, Bush,
Caudill, Cornett, Everett, Farmer, Flanery, Freeman, Gay, Greene,
Griffin, Grundy, Harris, Heskamp, Holsclaw, Durham W. Howard,
Jennings, Lambert, Lowman, Martin, McKinney, Melton, Murphy,
Nunn, Nunnelley, Pollitte, Qualls, Ray, Rayburn, Howard V. Reid,
Reynolds, Saylor, Tanner, Wathen, and Weintraub, who were granted
leaves of absence on motion of Representative Morgan.

Introduction of Resolutions
HR 1, by Representative Morgan: A RESOLUTION adopting
rules to govern the Fourth Extraordinary Session of the 1956 General
Assembly.

Be it resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky:

That the rules of the House of Representatives of the 1956 Regu-
lar Session of the General Assembly be adopted as the Rules of the
House of Representatives of the Extraordinary Session of the General
Assembly convened on April 6, 1956.

Representative Morgan moved adoption of HR 1. Adopted.

HR 2, by Representative Morgan: A RESOLUTION notifying the
Senate and the Governor that the House of Representatives is or-
ganized.

* Be it resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky:

_ That the Speaker of the House of Representatives be authorized
and directed to appoint a committee of seven members to notify the
Senate that the House of Representatives is organized and ready for

April 6 HOUSE OF REPRESENTATIVES 241

business, and that this committee meet with a like committee to be
appointed by the President of the Senate, and that said joint committee
then call on the Governor of the Commonwealth of Kentucky to notify
him that this General Assembly is duly organized and ready to receive
any message that he may desire to deliver, his fixing the time and place.
Representative Morgan moved adoption of HR 2. Adopted.

Appointment of Committee

The Speaker appointed the following committee pursuant to HR 2:
Representatives Howard V. Reid, Hill, Flanery, Greene, Jennings
Caudill, and Qualls.

Joint Session

The Committee appointed to wait upon the Governor reported
that the Governor was ready to address a Joint Session of the General
Assembly.

The Senate entered upon the floor of the House and the Hon-
orable Harry Lee Waterfield, Lieutenant-Governor and President of
the Senate, assumed the Chair and called the Joint Session to order.

Prayer by the Reverend T. Herbert Tinsley, member of the House
of Representatives.

Representative Morgan moved that the roll call be dispensed with.
Agreed.

The Committee appointed to wait upon the Governor appeared
with His Excellency, Albert B. Chandler, Governor of the Common-
wealth of Kentucky, who took his place at the Clerk’s desk.

The Governor addressed the General Assembly as follows:

ADDRESS OF GOVERNOR A. B. CHANDLER
TO THE FOURTH EXTRAORDINARY SESSION
OF THE GENERAL ASSEMBLY OF 1956

April 6, 1956

Governor Waterfield, Mr. Speaker Fitzpatrick, Members of the
General Assembly:

I want to take this opportunity to express again to the members
of this Assembly my deep appreciation for the splendid cooperation
you have given in our joint efforts in both the Regular and the Special
Sessions to provide the best legislation possible for the people of
Kentucky.

I do not believe that any fair and impartial mind can review the
legislation to date, which has been enacted through your efforts, with-
out being convinced that this legislation establishes a landmark in the
forward progress of Kentucky in providing for: the construction of
greatly needed public highways; the initiation of a school program
which will broaden educational opportunities for our children beyond
that of any other period in our history; expansion of the health and
welfare programs; and the reorganization of the administrative de-

242 JOURNAL OF THE April 6

partments to provide efficient and economical administration of the
affairs of government.

I take a great personal pride in these accomplishments, and I
believe that you will likewise take justifiable pride in the part that
you have taken in bringing this constructive program to our people.
As you know, the education of our children has been one of the most
pressing problems facing the people of Kentucky for many years. It
has become a tradition in Kentucky to accept the lowest place among
the states with respect to educational standards. Now, by reason of our
full implementation of the Minimum Foundation, Teacher’s Retire-
ment and other contributions to the educational program, we can
raise our place to one of honor among the states. In this connection,
it is appropriate for me to call to your attention a letter which Dr.
Robert Martin, the Superintendent of Public Instruction, recentl
wrote with reference to the school legislation which you have enacted.
You will recall that Dr. Martin was on the slate of my opponent in the
recent Democratic primary and, therefore, has no political purpose in
issuing a statement favorable to my administration; however, I want
to take this opportunity to say to you that I have found Dr. Martin
to be an extremely capable, honorable, efficient and forward-looking
school administrator. I have taken the care to remind you briefly
again of these facts concerning Dr. Martin because I believe that you
and the public will accept his statement as being accurate and un-
biased. That letter reads as follows:

“March 8, 1956
Honorable A. B. Chandler
Governor
Commonwealth of Kentucky
Frankfort, Kentucky

My dear Governor Chandler:

I have reviewed very carefully the laws which were enacted by
the regular session of the 1956 General Assembly and I want to con-
gratulate you and the members of the General Assembly for the fair
and consistent support which you gave to education in this session.
I am convinced that more good school legislation was enacted by the
1956 General Assembly than has been enacted by any General Assem-
bly since the school code was developed in 1934, I want you to know
how deeply we appreciate this fine support for education.

The highlights of the session might be listed in this manner:

1. The amended Foundation Program Law is a vastly improved
measure over the one adopted two years ago.

2. The proposed constitutional amendment will make possible
the development of a professional Department of Education to direct
the school affairs of this state.

3. The Annual Governor’s Conference on Education puts Ken-

April 6 HOUSE OF REPRESENTATIVES 243

tucky in the forefront of states which are periodically studying educa-
tional problems.

4. The amended annexation law will protect the interests of the
various school districts and will allay numerous disputes.

5. The removal of maximum limits on the salaries of the presi-
dents of the University and the state colleges, as well as the local
school superintendents, will provide better educational leadership
throughout the Commonwealth.

In fact there were twenty-one bills and six resolutions enacted
into law which directly affect education. I can wholeheartedly endorse
all of these except two of the measures which became law. These
two, concerning the mandatory training of the mentally retarded
and the rebinding of free textbooks, are of doubtful value and may
even be detrimental. On the other hand, the Legislature wisely ignored
numerous bills which were positively detrimental to education.

May I say to you, Governor, that education is definitely on the
march. We are getting our house in order to make the tremendous
strides to which you and I have dedicated ourselves.

Cordially yours,

Robert R. Martin
Superintendent of Public Instruction”

I consider, as I am sure you do, that this is a statement of great
interest to the people of Kentucky and I am fearful that the statement
has had such little publicity that many Kentuckians and many members
of this General Assembly do not know of it.

Insofar as I have been able to ascertain, the public generally,
including even the Courier-Journal, has wholeheartedly endorsed the
budget which you adopted during the Third Extraordinary Session;
however, the Courier-Journal attempted to obstruct the adoption of
this progressive budget. To this end, the Courier-Journal, through
its rigid and dictatorial] thought control of the Democratic leaders in
Louisville and Jefferson County, had each member of the General
Assembly from Louisville and Jefferson County to sign a pledge to
vote against this budget unless the revenue matters to be considered
at this session were explored and debated in the preceding session.

You have, in this instance, the most deplorable example of dic-
tatorial rule that I have ever witnessed in this Commonwealth or in
the United States. It is a sad commentary on democracy when a group
of members of this General Assembly is forced to sign a written pledge
as to how they will vote and exercise their discretion before they even
arrive at the State Capitol. Yet, the powers which forced the signing
of such an agreement are always the first to accuse someone else.

Now, I come to the revenue and taxation program which I pro-
pose for your consideration. Because of the tremendously progressive
legislation which you have enacted, particularly with reference to

244 JOURNAL OF THE April 6

the public schools, it was necessary that our tax structure be given
careful consideration. The Department of Revenue, through the
guidance of its commissioner, Mr. Luckett, has developed proposed
legislation which I am proud to recommend to you. I believe that
after you have thoroughly considered it in connection with the budget
which you have already adopted, every member of this General As-
sembly will wholeheartedly endorse it, vote for it, and go back home
and receive the gratitude of all your people there.

I am most happy to report to you that we do not find it necessary
to impose a substantial tax burden upon a single citizen of this Com-
monwealth. To digress for a moment, I remind you that in the primary
campaign I stated that I felt confident that the then existing tax laws
would produce a total revenue approaching 100 million dollars an-
nually. My opponents made light of this prediction. I am pleased to
advise you that the Department of Revenue, after a careful detailed
study of this matter by some of the most competent persons in the
state, now confirms my prediction that existing laws will produce
approximately 100 million dollars a year. This estimated revenue is
confirmed officially in the biennial budget, which you have just
adopted, and demonstrates that the criticism of these estimates by
certain influences was unfounded.

However, I find, since coming to Frankfort, that in estimating
expenditures there were certain hidden expenses which I could not
possibly have anticipated, such as one and one-half million dollars
which you have already had to provide for the State Fair project.

There is also included in the budget, funds to bring the bond
reserve account for the Capitol Annex building up to the contractual
requirement. I also find that the final cost of the Minimum Foundation
Program exceeds the original estimates.

In view of the foregoing considerations, it is clear that some
additional revenue will have to be collected, in order to give the
people of Kentucky the educational program and other governmental
services which have been promised them and are desired by the over-
whelming majority. Under the proposed tax legislation, this additional
revenue can be provided by making some equitable adjustments in
the present tax structure without materially increasing the tax burden
of a single person or family. I am indeed happy to report to you that
there is no necessity at this time to impose a sales tax or any similar
onerous and burdensome tax upon the people least able to pay it.

In general, these revenue proposals will spread the additional
burden over the greatest number of people in the most equitable
manner possible. My proposals cover adjustments in the following:
(1) corporation income tax, (2) individual income tax, (3) intangible
property tax, (4) insurance premium tax, and (5) distilled spirits tax.
Two other proposals are included in the program. One is a docu-
mentary tax intended primarily for a regulatory purpose and the

April 6 HOUSE OF REPRESENTATIVES 245

other concerns the escheat of property presumed abandoned. Each of
these proposals will be discussed.

Income Taxes

In all of the following proposals the deductibility of federal in-
come taxes is retained. For those individuals who itemize their de-
ductions, the increased Kentucky tax will lower their federal tax.
Hence, a considerable portion of the increase in Kentucky income taxes
will be borne by the Federal Government. For corporations, approxi-
mately half the proposed increase in Kentucky tax will thus be ab-
sorbed by the Federal Government.

Corporation Income Tax

I propose to increase the rate, which is now 4.5 per cent, to 5
per cent on the first $25,000 and 7 per cent on all over $25,000 of net
taxable income, effective for taxable years ending June 30, 1956, and
thereafter. This will accomplish two purposes. First, it will raise an
estimated additional $4.5 million of revenue in 1956-57 and $4.6
million in 1957-58 under present conditions. Secondly, it will correct
a long-standing inequity. Under the flat rate, the 4,350 corporations
with less than $25,000 net income can write off only 30 per cent of
their Kentucky tax as a federal deduction, whereas some 670 corpora-
tions with more than $25,000 net can write off Kentucky tax at the
52 per cent federal rate. Thus, because of deductibility the effective
rate will average slightly less than 3.5 per cent of net taxable income.
The following table illustrates how my proposal creates more equity
by producing more uniform effective rates:

Kentucky Net Current Proposed
Taxable Income Effective Rate Effective Rate
$ 10,000 3.19% 3.55%

80,000 3.06 3.41
50,000 2.72 3.25
100,000 247 8.37
1,000,000 2.24 8.47
10,000,000 2.21 3.49

Let me give you a few examples to show what the actual tax
increase would be in dollars:

Company
with Taxable Total Federal Total Tax Per Cent
Net Income and State Taxes Increase Increase
$ 10,000 $ 3,223.57 $ 25.21 8
50,000 21,152.47 127.11 6
250,000 127,275.75 1,351.28 11
1,000,000 . 525,238.07. 5,941.88 11

The increase in total income tax burden will not exceed 1.25 per

246 JOURNAL OF THE April 6

cent and for most corporations it will be less than 1 per cent of net
taxable income.

There are those who will say that the proposed rates are too high
and that corporations will expand elsewhere in the South. Let me
point out the effective rates in some of these southern states where
the so-called “grass is greener.”

Effective

Tax Rate
Arkansas 5%
Georgia 4
Maryland 4.5
Mississippi 6.8 (Over $25,000)
North Carolina 6
South Carolina 5
Tennessee 3.75
Virginia 5.00
(Kentucky) (8.5)

You may readily see that all these states are higher than the
proposed 3.5 effective rate for Kentucky. Bear in mind also that such
an industrial giant as New York has a 5.5 effective rate and Pennsy]-
vania has a 6 per cent effective rate.

I am confident you will agree that my proposal is exceedingly
reasonable and fair to all concerned.

Individual Income Tax

I propose several changes in the individual income tax law,
effective for taxable years ending December 31, 1956, and thereafter.
The changes are designed primarily to correct some existing inequity,
to conform more closely with provisions of the Federal Income Tax
Code, and to raise additional revenue. They are as follows:

1. Disallow the deduction of state income tax—an unjustifiable
provision introduced in 1954 which favors those who itemize
deductions, particularly those with large incomes;

2. Substitute a flat $12.00 credit, for each exemption, in place of
present variable credits of $20 for a single person, $40 for a
married couple and $10 for each dependent.

The flat credit has much merit. It will save a lot of confusion and

cause less error on returns because it is simpler to compute the credit.

The Federal Government allows a flat deduction of $600 for each
exemption which, at our 2 per cent rate, also amounts to a $12.00
credit.

To show you how it works: At present, a married couple with
one child gets a total credit of $50.00 ($40 for the couple and $10 for
the child). Under the new proposal, the total credit would be $36
(3 exemptions X $12).

This proposal will broaden the tax base because a single person

April 6 HOUSE OF REPRESENTATIVES 247

will get $8 less credit and married couples will get $16 less credit
than now. But I submit that while an estimated additional 150,000
persons will pay tax for the first time, the burden is small compared
with what would be paid under a general sales tax which has been
advocated by many and which is so onerous on those least able to pay.
3. Apply a surtax to raise additional revenue. I propose that the
surtax be 10 per cent on the first $25 of tax; 20 per cent on the
next $75 of tax; and 80 per cent on all tax over $100. Don't be
alarmed by these rates. Remember we have retained deducti-

bility of the Federal tax in computing the state tax.
Let me give you a few illustrations of what the $12 credit and
surtax combined means dollar-wise for a married couple with one child:

Gross Income Increased Tax
$ 2,500 $ 8
4,500 20
7,500 44
10,000 74
25,000 262.

For taxpayers who itemize deductions for Federal purposes, the
tax increase can be written off at applicable Federal rates beginning
at 20 per cent.

4. Adopt the Federal Code of 1954 with minor exceptions.

To make it easier for taxpayers to file their state returns, it is
desirable to use, as nearly as practicable, the same definitions as the
Federal Government in determining taxable net income. By bringing
our law more in line with Federal, we will cut the revenue slightly
but I believe the purpose justifies it. Among the provisions liberalized,
and which will benefit many, are those affecting dependents, medical
expenses; contributions; annuities and child care. I think the Federal
provision for working mothers, or widowers, is especially worthy.

Now let us tally up the net revenue effects of these proposed
changes in the individual income tax law. The Department of Revenue
estimates an additional $13,500,000 for 1956-57 and $14,500,000 for
1957-58.

Intangible Personal Property Tax

I propose two changes in the law affecting intangible taxes to
raise revenue and to improve administration.

1. Increase the rate, effective 1957-58, on those classes of in-
tangible property now taxed at 25 cents per $100 of assessed value
to 40 cents. According to the Department of Revenue, there are about
60,000 individuals and corporations which will be concerned. Most of
the intangibles tax is paid by a relatively few taxpayers who will be
able to save on their federal and state income taxes. Thus, the net
increase will not be as large as it appears. To the small holder with
$1,000 in stocks, bonds or notes, the tax increase would be from $2.50
to $4.00, or $1.50.

248 JOURNAL OF THE April 6

This rate increase, together with normal growth, should produce
an estimated additional $3,000,000 in 1957-58.

2. Transfer assessment and collection from the local level to the
Department of Revenue. The first state assessment will be as of De-
cember $1, 1957, with tax collected during the 1958 income tax filing
period. The intangibles are taxed only by the state and as local gov-
ernments have never benefited, local administration has not produced
the results believed possible.

This transfer will enable the county tax commissioner to con-
centrate his efforts in doing a better job on the assessment of property
which is so vitally important to the financial well-being of the counties
and the schools. While some improvement has been made in many
counties in the assessment of real property, much more progress is
needed. More attention must be given to improving the assessment
of inventories and other classes of tangible property.

The job of the county tax commissioner needs to be strengthened
for the duties he can best perform. Consistent with this objective, the
compensation, allowance for deputy hire, and other authorized ex-
penses of the county tax commissioner's office shall not be reduced.

Insurance Premium Taxes

I propose changes in the law to produce General Fund revenue
and to consolidate revenue administration.

1. Establish a uniform premium tax rate of 2% per cent on all
insurance written by all companies except certain church, fraternal,
burial and cooperative associations. The effect of this proposal, aside
from revenue, is to consider domestic companies the same as foreign.
This is in line with the trend in other states to treat all companies alike
as a matter of business fairness and to avoid retaliatory action.

This tax increase should not mean an increase in the life premiums
to Kentucky policyholders, as I am informed that life premium rates
are uniform throughout the United States and include an allowance
for all state premium taxes.

The net gain to the General Fund will be $2,750,000 in 1956-57
and $2,900,000 in 1957-58.

2. Transfer, effective January 1, 1957, collection of the insurance
premium taxes to the Department of Revenue. I believe it is important
for regulatory agencies to concentrate their efforts on regulation.
Likewise, I have long believed that the job of the Department of
Revenue should be to administer all the revenue laws, insofar as it is
practicable to do so. Because of advantages to be gained from co-
ordination of reporting and auditing, I believe more effective enforce-
ment of all the tax laws may be obtained.

Distilled Spirits Taxes
- During the 1956 Regular Session of the General Assembly, House

Bill No. 516 was enacted to increase the whiskey production tax from’
5 cents to 10 cents per gallon. That legislation appeared to have pos-

April 6 HOUSE OF REPRESENTATIVES 249

sible far-reaching adverse effects upon the economy of Kentucky.
Therefore, I asked Dr. James W. Martin, Commissioner of Finance,
and Mr. James E. Luckett, Commissioner of Revenue, to make a com-
plete study of the problem and report their findings and conclusions
to me. This has been done and I want to read Dr. Martin’s report which
summarizes the substance of the findings:

“April 5, 1956
Honorable A. B. Chandler
Governor of Kentucky
Frankfort, Kentucky

Dear Governor:

Pursuant to your request, I have reviewed the data produced by
the staff of the Department of Revenue respecting the alcoholic bev-
erage production tax. I have also conducted some independent inquiry.
‘As a result of this study, I think there is no doubt the recent increase of
five cents a gallon should be repealed for the following reasons:

1. The effect on.the growth of Kentucky’s economy would be
disastrous. The original act has already impaired the ‘climate’
for new industry; if it remains on the statute books, the damage
will, in a measure be cumulative. This department has knowledge
of specific manufacturing developments other than distilling
which have been called off or held in abeyance in consequence
of the legislation. The damage to retailers, to railroads, and to
other businesses—aside from the payroll and other immediate
reductions in distilling—as the distilling personnel and capital
depart constitutes a shorter range tragedy to the economy that
will be substantial.

2. The effect on the budget of the Commonwealth, although it
cannot be predicted with precision, will undoubtedly be serious.
The evidence seems to assure that my guess several weeks ago
that production to the tune of 20 to 25 per cent of whiskey pro-
duction will be driven out next year was over-conservative. I
would now guess (a little more educated guess) that the higher
rate will drive out of the state or out of business 30 to 40 per
cent. (National Distillers, Schenleys, and Seagrams now produce
about 60 per cent of all Kentucky whiskey. Roughly half of their
production would doubtless go the first year.

Additional loss would stem from the outright failure of small
Kentucky distillers, thereby encouraging monopoly.)

The consequence in budgetary items would be unpredict-
able losses in revenue over the next three or four years (a) in
property tax accruals for state and local government, mainly for
schools, (b) in income tax collections, (c) in excises such as amuse-
ment, cigarette, and alcohol consumer taxes, and (d), after about
the second year, in alcohol production tax revenue. In the long

250 JOURNAL OF THE April 6

run, the measure cannot fail to affect adversely such remote
tax revenues as those from inheritances.

3. Some members of the General Assembly misunderstand the
economic character of the tax. This is apparent from their com-
parisons of the rate with that on cigarette consumption. The state,
as you know, does not impose any production tax on cigarette or
any other manufacturing. No other state imposes a general-
coverage production tax on any important manufacturing busi-
ness.

4. Ordinarily, if a tax measure proves objectionable in operation,
the unfortunate results can be corrected by later repeal of the
objectionable tax. The repeal of this rate increase is all the more
urgent in view of the fact that damage done cannot be remedied
by subsequent action. Most of the evil effects of this particular
legislation would be continuing in the sense that repeal of the
tax would never restore the economy.

5. The increase in the production tax is morally indefensible.
There is no basis for the widespread destruction of property
values all over the state which this act promises. If the increase
remains on the statute book, the good name of Kentucky will
suffer.

In your announcement of assignment to Luckett and myself to
study the liquor production tax, you made a moral commitment to the
press to being guided by the evidence. In our opinion, the evidence
provides no support for the additional tax.

In conclusion, I would emphasize that the damage to the big
distilleries would be minor. The injury to small Kentucky distillers
would be fatal. The real damage would be to Kentucky.

Cordially yours,

JAMES W. MARTIN
Commissioner”

Mr. Luckett’s report summarizes the revenue aspects of the prob-
lem and this report is available for your guidance. As this report shows,
as a result of the extra 5 cents per gallon production tax, probably
an estimated revenue of only one million dollars additional would be
produced per year. I, therefore, present this estimate to you as a
balancing figure for purposes of computing the receipts side of the
budget at this time. Thus, it becomes highly important that you give
serious consideration to the problems involved and take proper action
which in your sound judgment is required to meet the state’s need for
revenue, but will not do irreparable damage to the state’s economy.

On the subject of the whiskey tax problem, I have on several
occasions expressed the view that our greatest tax difficulty arises
from the fact that the Federal Government has so preempted the field

April 6 HOUSE OF REPRESENTATIVES 251

in Kentucky that Kentucky is precluded from collecting the taxes
which it is entitled to collect from sources which would produce sub-
stantial revenue. Consider for this purpose that the Federal Govern-
ment imposes a tax of $10.50 on each gallon of whiskey. It costs ap-
proximately 85 cents to produce a gallon of whiskey in the state of
Kentucky; consequently, the federal tax alone is roughly twelve times
the cost value of the whiskey itself. Such a tax is grossly unfair to
the state of Kentucky and is a discrimination against Kentucky. For
example, the basic industry in the state of Michigan is the production
of automobiles, but the Federal Government does not impose a tax
of twelve times the value of an automobile, and plenty of leeway is
left for the state of Michigan to impose, if it so desires, a reasonable
tax upon the automobile industry.

Similarly, your Federal Government does not impose a tax ten
times the value of a gallon of oil produced in the state of Texas or
some other oil-producing state, so that plenty of leeway is left in those
states for them to impose a reasonable tax on the oil industry, if they
so desire. Numerous other illustrations could be given to show clearly
that, as a general proposition, the Federal Government does not so
preempt the field of taxation in the various states that there is nothing
left for those states to tax without destroying a major industry.

I, therefore, believe that if our representatives in Congress had
seen fit to call this inequity to the attention of Congress and to propose
legislation giving Kentucky reasonable, or at least some, relief that
Congress would have passed such legislation. Certainly, we are en-
titled to believe and presume that the Congress of the United States
will do what is fair and equitable and will not discriminate as between
the states. Since I have faith in the fairness and integrity of Congress,
as I know you do, I have prepared and will submit for your considera-
tion the adoption of a resolution requesting the U. S. Congress to enact
legislation which will provide that if any state in which whiskey is
produced, imposes a tax up to two dollars per gallon, such tax shall
be allowed as a credit against the payment of the $10.50 per gallon
Federal tax. Such a provision would be fair to both the states in which
whiskey is produced and the Federal Government.

This legislation would mean approximately 80 million dollars in
additional taxes to the state of Kentucky. If such an act were passed by
Congress, there would be no possible need for a sales tax within the
foreseeable future. I, therefore, sincerely urge the adoption of this
resolution and honestly believe that Congress will consider it favorably
because it is fair and equitable.

Documentary Tax on Deeds

I propose a documentary tax on deeds for the purpose of calculat-
ing sounder assessment ratios. The tax would be levied on the transfer
of real estate, at a rate of 10 cents for each $100 of value, effective
January 1, 1957.

252 JOURNAL OF THE April 6

This new tax is intended more as a measuring device than for
the $200,000 revenue that may be collected annually. I deem this
measure important for the following reasons:

With the implementation of the Foundation Program for schools,
it becomes increasingly necessary that the state have a more accurate
measure of the local tax effort.

At the present time, the state must depend largely upon the
Federal documentary stamp tax on deeds for assessment ratio data.
It is common knowledge that enforcement of this F ederal tax is not
satisfactory. Therefore, I am proposing that we have our own inde-
pendent measuring stick.

{ should mention that a number of states have similar taxes, in-
cluding Alabama, Tennessee and Virginia.

Escheat

I propose an amendment to our law on the escheat to the state
of property presumed abandoned. The proposal is designed to clarify
a provision to make possible the escheat of unclaimed Federal income
tax refunds which may be presumed abandoned.

With the enactment of our proposal, the Department of Revenue
will have a sound legal basis for proceeding to escheat such property.
No estimate of such funds is made for this biennium as the actual
escheat would undoubtedly be deferred until a later date.

BUDGET SUMMARY

I have said that we would balance the General Fund Biennial
Budget by providing an adequate revenue program. The following
summary shows how we propose to make both ends meet:

Estimated Expenditure Needs
1956-57 1957-58

Grand Total General Fund Expenditures $122,350,000 $126,000,000
Estimated Funds Available 100,720,770 100,000,000
Additional Needs $ 21,629,230 $ 26,000,000

Appropriation for administration of
new revenue legislation 165,000 215,000
Total Additional Needs $ 21,794,230 $ 26,215,000

Estimated Revenue From Proposed Revenue Legislation

; 1956-57 1957-58
Corporation Income $ 4,500,000 $ 4,600,000
Individual Income 13,500,000 14,500,000
Intangibles 3,000,000

Insurance Premiums 2,750,000 2,900,000

April 6 HOUSE OF REPRESENTATIVES 253

Distilled Spirits 1,000,000 1,000,000

Documentary Tax on Deeds 100,000 200,000
Total Additional $21,850,000 $26,200,000

Estimated Surplus end of 1956-57 55,770

Estimated Surplus end of 1957-58 40,770

The detailed revenue estimates are being prepared by the De-
partment of Revenue for the Department of Finance. This detail will
be available to you when you convene Monday.

In closing my message, I take pride in what we together have
accomplished in the previous sessions and I am confident that you
will consider thoughtfully the program I have presented. I am con-
vinced that its enactment will make possible the most progressive
biennium in the history of Kentucky’s State Government.

Mr. Morgan moved that the Joint Session of the General Assembly
do now dissolve. Agreed.

The Speaker resumed the Chair and called the House to order.

Representative Morgan moved the Houes adjourn until 8:00 P.M.,
Monday, April 9th. Agreed.

254 JOURNAL OF THE April 9

MONDAY, APRIL 9, 1956
THIRD LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend H. Glenn Stephens of the South Frank-
fort Presbyterian Church, Frankfort.

The roll was called. All present except Baumgardner, Blue, Bu-
chanan, Carter, Caudill, Embry, Griffin, Gullette, Hadden, Heyburn,
Hill, Durham W. Howard, Jennings, Lowman, Melton, Miller, Nun-
nelley, Qualls, Rayburn, John B. Reed, Vernon Reed, Searcy, Thomp-
son, Tinsley, Walsh, Weintraub, Lynn B. Wells, and Young, who were
granted leaves of absence on motion of Representative Morgan.

Reading of the Journal for April 6, 1956, dispensed with and the
same approved on motion of Representative Isler.

Introduction of Bills and Resolutions
HR 8, by Representative Burnley: A CONCURRENT RESOLU-
TION memoralizing Congress to reduce the tax burden on the major
industries of the Commonwealth of Kentucky.

HB 1, by Representative Morgan: AN ACT relating to income
taxes.

HB 2, by Representative Morgan: AN ACT relating to revenue
and taxation.

HB 3, by Representative Morgan: AN ACT relating to revenue
and taxation and recording of deeds and conveyances.

HB 4, by Representative Morgan: AN ACT relating to and levying
a license tax on the privilege of issuing or using trading stamps as
herein defined.

HB 5, by Representative Morgan: AN ACT relating to annexation
of unincorporated territory by municipalities in Kentucky.

HB 6, by Representative Morgan: AN ACT amending KRS 341.490
and KRS 341.510. °

HB 7, by Representative Morgan: AN ACT appropriating money
to the Department of Revenue.

HB 8, by Representatives Caudill, Martin, Bridgers, Mackey, Had-
den, Hahn, Thomas, Lowman, Breathitt, Griffin, Heyburn, Murphy,
Saylor, Nunn, McFadden, McKinney, Barnum, Cornett, Williamson,
Peace, Jennings, Reynolds, Buchanan, Miller, R. Reid, Dunsil, Free-
man, Highland, Hislope, D. W. Howard, Lambert, Sloan, A. W. Wells,
Pollitte, McCallum, Wilson, Ratcliffe, Mullins, Casey, Wirsch, and
Embry: AN ACT relating to pari-mutuel and other similar systems of
betting and the taxation thereof, and the appropriation of certain
revenue therefrom.

April 9 HOUSE OF REPRESENTATIVES 255

-HB 9, by Representative Bates: AN ACT relating to alcoholic
beverage prohibition.

HB 10, by Representative Grigsby: AN ACT relating to pari-
mutuel and other similar systems of betting and the taxation thereof.

HB 11, by Representative Freeman: AN ACT relating to revenue
and taxation.

HB 12, by Representative Cottengim: AN ACT relating to revenue
and taxation.

HB 18, by Representative Cottengim: AN ACT to provide for the
raising of public revenue by imposing a tax upon the receipt of gross
income to provide for the ascertainment assessment and collection of
said tax and to provide penalties for the violation of the terms of this
ACT and to repeal certain sections of the KRS.

HB 14, by Representative Davidson: AN ACT relating to revenue
and taxation.

Recess
Representative Morgan moved that the House do now recess for
20 minutes for a Rules Committee Meeting. Agreed.

At the appointed hour, the Speaker resumed the Chair and called
the House to order.

Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.
Report of Committee

Committee on Rules reported HB 1, HB 2, HB 8 and HR 8 with
the expression of opinion that the same should pass. Read at length for
the first time and ordered placed in the Calendar.

HB 1: AN ACT relating to income taxes.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Section 141.010 of the Kentucky Revised Statutes is
amended to read as follows:

As used in this Chapter, unless the context requires otherwise:

(1) “Commissioner” means the Commissioner of Revenue.

(2) “Department” means the Department of Revenue.

(8) “Internal Revenue Code” means the Internal Revenue Code
in effect on January 1, 1956.

(4) “Dependent” means those persons defined as dependent
under Section 152 of the Internal Revenue Code.

(5) “Fiduciary” means a guardian, trustee, executor, administra-
tor, receiver, conservator, or any person acting in any fiduciary capacity
for any person, estate or trust.

256 JOURNAL OF THE April 9

(6) “Fiscal year” means an accounting period of twelve months
ending on the last day of any month other than December.

(7) “Individual” means a natural person.

(8) “Federal income tax” means income tax paid or accrued to
the United States Government on income subject to assessment and
taxation under the provisions of this chapter.

(9) “Net income,” in the case of taxpayers other than corporations,
means “gross income” as defined in Section 61 of the Internal Revenue
Code less the deductions allowed under Parts VI and VII of Sub-
a B, Chapter 1 of the Internal Revenue Code adjusted as fol-
ows:

(a) Exclude income that is exempt from state taxation by the
Constitution and statutory laws of the United States.

(b) Exclude dividend income received during the taxable year
upon stock of banks and trust companies organized under the laws
of this state.

(d) Exclude the “net operating loss deduction.”

(e) Include interest income derived from obligations of sister
states and political subdivisions thereof.

(f) Include refunds of Federal income tax.

(g) Exclude any deduction for state taxes measured by net
income;

Provided that partial exclusion of dividends received by individ-
uals which is authorized by Section 116 of the Internal Revenue Code
shall not be allowed.

If the taxpayer elects to deduct the standard deduction set forth
in KRS 141.081, then “net income” means adjusted gross income less
the standard deduction.

(10) “Net income,” in the case of corporations, means “gross
income” as defined in Section 61 of the Internal Revenue Code less the
deductions allowed under Part VI of Subchapter B, Chapter 1 of the
Internal Revenue Code and less the deduction allowed under Section
248 of the Internal Revenue Code adjusted as follows:

(a) Exclude income that is exempt from state taxation by the
Constitution and statutory laws of the United States.

(b) Exclude dividend income received during the taxable ae
pa stock of banks and trust companies organized under the laws
of this state.

(d) Include interest income derived from obligations of sister
states and political subdivisions thereof.

(e) Exclude any deduction for state taxes measured by net in-
come.

(f) Exclude the “net operating loss deduction.”

(11) “Taxable net income,” in the cases of corporations, means

April 9 HOUSE OF REPRESENTATIVES 257

“net income” derived from business done, property located, activities
or sources in this state less “Federal income tax.”

(12) “Adjusted gross income” means the same as adjusted gross
income defined in Section 62 of the Internal Revenue Code, adjusted
as follows:

(a) Exclude income that is exempt from state taxation by the
Constitution and statutory laws of the United States.

(b) Exclude dividend income received during the taxable year
upon stock of banks and trust companies organized under the laws of
this state.

(d) Exclude the “net operating loss deduction.”

(e) Include interest income derived from obligations of sister
states and political subdivisions thereof.

(f) Include refunds of Federal income tax;

Provided that partial exclusions of dividends received by in-
dividuals which is authorized by Section 116 of the Internal Revenue
Code shall not be allowed in determining “adjusted gross income.”

(18) “Person” means and includes an individual, a fiduciary, a
partnership, an employer, an valor hi and a corporation.

(14) “Taxable year” means the calendar or fiscal year end-
ing during such calendar year, upon the basis of which net income is
computed and in the case of a return made for a fractional part of a
year under the provisions of this chapter or under regulations pre-
scribed by the commissioner, “taxable year” means the period for
which such return is made.

(15) “Net operating loss deduction” means the deduction allowed
under Section 172 of the Internal Revenue Code.

(16) “Resident” means any individual domiciled within this state.

(17) “Nonresident” means any individual not a resident of this
state.

(18) “Employer” means “employer” as defined in Section 3401 (d)
of the Internal Revenue Code.

(19) “Employe” means “employe” as defined in Section 3401 (c)
of the Internal Revenue Code.

(20) “Number of withholding exemptions claimed” means the
number of withholding exemptions claimed in a withholding exemption
certificate in effect under KRS 141.325, except that if no such certifi-
cate is in effect, the number of withholding exemptions claimed shall
be considered to be zero.

(21) “Wages” means “wages” as defined in Section 3401 (a) of
the Internal Revenue Code.

(22) “Payroll period” means a period for which a payment of
wages is ordinarily made to the employe by his employer, and the
term “miscellaneous payroll period” means a payroll period other
than a daily, weekly, biweekly, semi-monthly, quarterly, semiannual,
or annual payroll period.

258 JOURNAL OF THE April 9

(28) For the purpose of determining the maximum limitations
of medical and dental expense deduction:

(a) “Head of household” means head of household as defined
in Section 1 (b) (2) of the Internal Revenue Code.

(b) “Surviving spouse” means “surviving spouse” as defined in
Section 2 (b) of the Internal Revenue Code.

(24) “Corporations” includes associations and joint stock com-
panies.

(25) “Gross Income” means “gross income” as defined in Section
61 of the Internal Revenue Code adjusted as follows:

(a) Exclude income that is exempt from state taxation by the
Constitution and statutory laws of the United States.

(b) Exclude dividend income received during the taxable year
upon stock of banks and trust companies organized under the laws of
this state.

(d) Include refunds of Federal income tax.

Partial exclusion of dividends received by individuals which is
authorized by Section 116 of the Internal Revenue Code shall not be
allowed.

Section 2. Section 141.020 of the Kentucky Revised Statutes is
amended to read as follows:

(1) With respect to taxable years beginning after December 31,
1955, an annual tax, consisting of a normal tax and a surtax, shall be
paid for each taxable year by every resident individual of this state,
upon his entire net income as defined in this chapter. Normal tax shall
be determined by applying the rates in subsection (2) to net income and
subtracting allowable tax credits provided in subsection (3). Surtax
shall be determined according to the rates in subsection (4). The
annual tax due shall be the sum of the normal tax and the surtax.

(2) The following rates shall be applied to net income:

(a) Two percent of the amount of net income not exceeding
three thousand dollars;

(b) Three percent of the amount of net income in excess of three
thousand dollars but not in excess of four thousand dollars;

(c) Four percent of the amount of net income in excess of four
thousand dollars but not in excess of five thousand dollars;

(d) Five percent of the amount of net income in excess of five
thousand dollars but not in excess of eight thousand dollars;

(e) Six percent of the amount of net income in excess of eight
thousand dollars.

(8) The following tax credits, when applicable, shall be deducted
from the result obtained under subsection (2) to arrive at normal tax.

(a) Twelve dollars for an unmarried individual. :

(b) Twelve dollars for a married individual filing a separate
return and an additional twelve dollars for the spouse of taxpayer if a

April 9 HOUSE OF REPRESENTATIVES 259

separate return is made by the taxpayer and if the spouse, for the
calendar year in which the taxable year of the taxpayer begins, has
no gross income and is not the dependent of another taxpayer; or
twenty-four dollars for married persons filing a joint return, provided
neither spouse is the dependent of another taxpayer. The determination
of marital status for the purpose of this section shall be made in the
manner prescribed in Section 153 of the Internal Revenue Code.

(c) Twelve dollars credit for each dependent whose gross income
for the calendar year in which the taxable year of the taxpayer begins
is less than six hundred dollars, or who is a child, as defined in Section
151 (e) (3) of the Internal Revenue Code, of the taxpayer and who
(i) has not attained the age of 19 at the close of the calendar year in
which the taxable year of the taxpayer begins, or (ii) is a student. No
exemption shall be allowed for any dependent who has made a joint
return with his spouse.

(d) An additional twelve dollars credit if the taxpayer has at-
tained the age of sixty-five before the close of the taxable year.

(e) An additional twelve dollars credit for taxpayer's spouse if
a separate return is made by the taxpayer and if the taxpayer's spouse
has attained the age of sixty-five before the close of the taxable year,
and, for the calendar year in which the taxable year of the taxpayer
begins, has no gross income and is not the dependent of another tax-
payer.

(f) An additional twelve dollars credit if the taxpayer is blind at
the close of the taxable year.

(g) An additional twelve dollars credit for taxpayer's spouse if a
separate return is made by the taxpayer and if the taxpayer's spouse
is blind and, for the calendar year in which the taxable year of the
taxpayer begins, has no gross income and is not the dependent of
another taxpayer.

(h) In the case of nonresidents, the tax credits allowable under
this subsection shall be that proportion of those permitted therein that
is represented by the ratio of the taxpayer’s net income in this state
to his total net income from all sources; or, if the taxpayer elects to
pay the tax under KRS 141.025, as represented by the ratio of the
taxpayer's adjusted gross income in this state to his total adjusted
gross income.

(i) In the case of a fiduciary, other than an estate, the allowable
tax credit shall be two dollars.

(j) In the case of an estate, the allowable tax credit shall be
twelve dollars.

(4) The following rates shall be applied to the normal tax to
determine the surtax:

(a) Ten percent of the amount of normal tax not in excess of
twenty-five dollars;

(b) Twenty percent of the amount of normal tax in excess of
twenty-five dollars but not in excess of one hundred dollars;

260 JOURNAL OF THE April 9

(5) An annual tax shall be paid for each taxable year as spec-
ified in this section upon the entire net income, except as herein pro-
vided, from all tangible property located in this state, from all intang-
ible property that has acquired a business site in this state, and from
business, trade, profession, occupation or other activities carried on in
this state, by natural persons not residents of this state. A nonresident
individual shall be taxable only upon the amount of income received
by him from labor performed, business done or from other activities
in this state, from tangible property located in this state, and from in-
tangible property that has acquired a business situs within this state.
The remainder of the income received by him shall be deemed non-
taxable by this state.

(6) Subject to the provisions of KRS 141.081 and KRS 141.082,
any individual may elect to pay the annual tax imposed by KRS
141.025 in lieu of the tax levied under this section.

Section 3. Section 141.025 of the Kentucky Revised Statutes is
amended to read as follows:

With respect to taxable years beginning after December 31, 1955,
any individual whose adjusted gross income for the taxable year for
which the return is filed does not exceed eight thousand dollars may
elect to compute his annual tax under this section. This annual tax
shall be determined by deducting the tax credits authorized by KRS
141.020 (3) from the amount indicated by the following table to ar-
rive at the normal tax, to which there shall be added a surtax as de-
termined by KRS 141.020 (4):

OPTIONAL TABLE

Adjusted
._ Gross Income But Amount
Is Over Not Over Shall Be
$ 0 $ 50 $ .45
50 100 1.85
100 150 2.25
150 200 3.15
200 250 4.05
250 800 4,95
300 850 5.85
350 400 6.75
400 450 7.65
450 500 8.55
500 550 9.45
550 600 10.35
600 650 11.25

650 700 12.15

April 9 HOUSE OF REPRESENTATIVES 261

Adjusted
Gross Income But Amount
Is Over Not Over Shall Be
700 750 13.05
750 800 13.95
800 850 14.85
850 900 15.75
900 950 16.65
950 1,000 17.55
1,000 1,050 18.45
1,050 1,100 19.35
1,100 1,150 20.25
1,150 1,200 21.15
1,200 1,250 22.05
1,250 1,300 22.95
1,800 1,350 23.85
1,350 1,400 24.75
1,400 1,450 25.65
1,450 1,500 26.55
1,500 1,550 97.45
1,550 1,600 28.35
1,600 1,650 29.25
1,650 1,700 80.15
1,700 1,750 81.05
1,750 1,800 81.95
1,800 1,850 $2.85
1,850 1,900 83.75
1,900 1,950 34.65
1,950 2,000 35.55
2,000 2,050 36.45
2,050 2,100 37.85
2,100 2,150 38.25
2,150 2,200 89.15
2,200 2,250 40.05
2,250 2,300 40.95
2,300 2,350 41.85
2,350 2,400 42.75
2,400 2,450 43.65
2,450 2,500 44.55
2,500 2,550 45.45
2,550 2,600 46.35
2,600 2,650 47.25
2,650 2,700 48.15
2,700 2,750 49.05
9,750 2,800 49.95

2,800 2,850 50.85

262 JOURNAL OF THE April 9

Adjusted

Gross Income But Amount
Is Over Not Over Shall Be
2,850 2,900 51.75
2,900 2,950 52.65
2,950 8,000 58.55
3,000 8,050 54.45
3,050 3,100 55.35
3,100 8,150 56.25
3,150 8,200 57.15
8,200 8,250 58.05
8,250 3,300 58.95
3,300 3,350 59.85
8,350 3,400 61.18
3,400 8,450 62.48
8,450 8,500 63.83
8,500 3,550 65.18
8,550 8,600 66.53
8,600 3,650 67.88
8,650 8,700 69.23
8,700 8,750 70.58
3,750 8,800 71.93
3,800 8,850 73.28
8,850 8,900 74.63
8,900 8,950 75.98
3,950 4,000 77.33
4,000 4,050 78.68
4,050 4,100 80.03
4,100 4,150 81.38
4,150 4,200 82.72
4,200 4,250 84.08
4,250 4,300 85.43
4,300 4,350 86.78
4,350 4,400 88.13
4,400 4,450 89.48
4,450 4,500 91.10
4,500 4,550 92.90
4,550 4,600 94.70
4,600 4,650 96.50
4,650 4,700 98.80
4,700 4,750 100.10
4,750 4,800 101.90
4,800 4,850 103.70
4,850 4,900 105.50
4,900 4,950 107.30

4,950 5,000 109.10

April 9 HOUSE OF REPRESENTATIVES 263

Adjusted

Gross Income But Amount

Is Over Not Over Shall Be
5,000 5,050 111.00
5,050 5,100 118.00
5,100 5,150 115.00
5,150 5,200 117.00
5,200 5,250 119.00
5,250 5,300 121.00
5,300 5,350 123.00
5,350 5,400 125.00
5,400 5,450 127.00
5,450 5,500 129.00
5,500 8,000 180.00 plus

5% of excess of $5,500

Section 4. Section 141.040 of the Kentucky Revised Statutes is
amended to read as follows:

Every corporation organized under the laws of this state and every
foreign corporation doing business in this state, or deriving income
from activities or other sources in this state, except state and national
banks and trust companies, building and loan associations organized
under the laws of this state and under the laws of the United States
and making loans to members only, insurance companies, including
farmers’ or other mutual hail, cyclone, windstorm or fire insurance
companies, insurers and reciprocal underwriters, and religious, educa-
tional, charitable and like corporations not organized or conducted
for pecuniary profit, shall pay for each taxable year a tax to be com-
puted by the department upon the taxable net income of the corpo-
ration. This tax shall be at the rate of five percent of the first twenty-
five thousand dollars of the taxable net income and at the rate of
seven percent of all in excess of twenty-five thousand dollars of the
taxable net income of the corporation determined as provided in this
chapter.

The provisions of this section shall be applicable to all corpora-
tions for all taxable years ending on or after June 30, 1956.

Section 5. Section 141.081 of the Kentucky Revised Statutes is
amended to read as follows:

(1) An individual, at his election, may deduct from his adjusted
gross income a standard deduction as follows:

(a) If his adjusted gross income is eight thousand dollars or
more, the standard deduction shall be five hundred dollars;

(b) If his adjusted gross income is less than eight thousand dol-
lars, the standard deduction shall be the amount as allowed by the ap-
plication of the optional table contained in KRS 141.025.

(2) The standard deduction provided for in this section shall be

264 JOURNAL OF THE April 9

in lieu of all deductions and shall not be allowed in the case of a tax-
able year of less than twelve months on account of a change in the
accounting period or in the case of a fiduciary.

Section 6. Section 141.082 of the Kentucky Revised Statutes is
amended to read as follows:

(1) If the adjusted gross income shown on the return is eight
thousand dollars or more, the standard deduction shall be allowed only
if the taxpayer so elects in his return, and the department shall, by
regulation, prescribe the manner of signifying such election in the
return.

(2) If the adjusted gross income shown on the return is less
than eight thousand dollars, the standard deduction shall be allowed
only if the taxpayer elects in the manner prescribed in KRS 141.025
to pay the tax imposed by that section.

(3) If the taxpayer does not signify, in the manner prescribed
by subsections (1) or (2) of this section, his election to take the
standard deduction, it shall not be allowed.

(4) If the adjusted gross income shown on the return is eight
thousand dollars or more, but the correct adjusted gross income is less
than eight thousand dollars, then an election by the taxpayer under
subsection (1) of this section to take the standard deduction shall be
considered as an election to pay the tax imposed by KRS 141.025; and
his failure to make, under subsection (1) of this section, an election
to take the standard deduction shall be considered his election not to
pay the tax imposed by KRS 141.025. If the adjusted gross income
shown on the return is less than eight thousand dollars but the correct
adjusted gross income is eight thousand dollars or more, than an elec-
tion by the taxpayer under subsection (2) of this section to pay the
tax imposed by KRS 141.025 shall be considered as his election to take
the standard deduction; and his failure to elect, under subsection (2)
of this section, to pay the tax imposed by KRS 141.025 shall be con-
sidered his election not to take the standard deduction.

(5) In the case of a husband and wife living together, the stand-
ard deduction provided for in KRS 141.081 shall not be allowed to
either if the net income of one of the spouses is determined without
regard to the standard deduction, The determination of the marital
status shall be made in the manner prescribed in Section 153 of the
Internal Revenue Code.

Section 7. Section 141.140 of the Kentucky Revised Statutes is
amended to read as follows:

(1) If the taxpayer makes, or is required to make, a Federal in-
come tax return, his income shall be computed for the purposes of this
chapter on the basis of the same calendar or fiscal year required by
the Federal Government, and he shall employ the same methods of
accounting required for Federal income tax purposes.

(2) If a return is made by an individual for a period of less

April 9 HOUSE OF REPRESENTATIVES 265

than one year, the net income, computed on the basis of the period for
which a separate return is made, shall be placed on an annual basis
by multiplying the amount thereof by the number of days in the year
and dividing by the number of days included in the period for which
the separate return is made. The tax payable shall be such part of the
tax computed on the annual basis as the number of days in the period
is of the number of days in the year.

(8) {fa return is made by a corporation for a period of less than
one year, the taxable net income, computed on the basis of the period
for which a separate return is made, shall be placed on an annual basis
by multiplying the amount thereof by the number of days in the year
and dividing by the number of days included in the period for which
the separate return is made. The tax payable shall be such part of the
tax computed on the annual basis as the number of days in the period
is of the number of days in the year.

Section 8. Section 141.150 of the Kentucky Revised Statutes
is amended to read as follows:

(1) Every corporation subject to the jurisdiction of this state,
unless excused by the department, shall render a correct report, duly
verified under oath, of its payments of dividends to residents of this
state, stating the name and address of each shareholder, the number
of shares owned by him, and the amount of dividends paid to him.

(2) Every person subject to the jurisdiction of this state, in what-
ever capacity acting, including lessees or mortgagors of real or per-
sonal property, fiduciaries and employers, making payment to another
person, domiciled in this state, of interest, rent, premiums, annuities,
compensations, remunerations, emoluments or other fixed or deter-
minable gains, profits and income not subject to the withholding pro-
visions contained in KRS 141.310 of six hundred dollars or more in any
taxable year, shall render a true and accurate report to the department
of the payments made. Every person subject to the jurisdiction of this
state, in whatever capacity acting, making payment to another person,
domiciled in this state, of wages shall render a true and accurate report
to the department of the payments made. In the case of such payments
made by the state and its political subdivisions, the officers or em-
ployes having information as to such payments designated by the de-
partment by the regulations hereinafter provided for shall make such
reports. The reports shall be made under the regulations and in the
form and manner and to the extent prescribed by the department, shall
set forth the amount of the gains, wages, profits and income, and the
name and address of the recipient of the payments. The department
may also require any person to make information reports respecting
non-residents it believes to be subject to income tax.

(8) The reports contemplated by this section may be required,
regardless of amounts, in the case of payments of dividends or interest
upon bonds, mortgages, deeds of trust or other similar obligations of

266 JOURNAL OF THE April 9

corporations: When necessary to make effective provisions of this
section the name and address of the recipient of the income shall be
furnished upon demand of the person paying the income. The pro-
visions of this section shall not apply to the payment of interest on
obligations of the United States or of this state, or the political sub-
divisions thereof.

Section 9. Section 141.180 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Every individual having for the taxable year a gross income
of six hundred dollars or more shall make to the Department of Rev-
enue a return stating specifically the items which he claims as deduc-
tions and tax credits allowed by this chapter, except that if any indi-
vidual who has attained the age of sixty-five before the close of his
taxable year shall be required to make a return only if he has for the
taxable year a gross income of twelve hundred dollars or more. If the
individual is unable to make his own return, the return shall be made
by a duly authorized agent.

(2) An optional return properly filed under the provisions of
KRS 141.025 shall be deemed sufficient to satisfy the provisions of this
section.

(3) Each individual return shall be verified by a written decla-
ration that it is made under the penalties of perjury.

Section 10. Section 141.210 of the Kentucky Revised Statutes
is amended to read as follows:

(1) As soon as practicable after each return is received, the de-
partment shall examine and audit it. If the amount of tax computed
by the department is greater than the amount returned by the tax-
payer, the excess shall be assessed by the department within four years
from the date the return was filed, except as provided in subsection
(2) of this section, and except that in the case of a failure to file a
return or of a fraudulent return the excess may be assessed at any
time and in the case of a return wherein the taxpayer omits from net
income an amount properly includible therein which is in excess of
twenty-five percent of the amount of net income stated in the return
the excess may be assessed at any time within six years after the return
was filed; provided, however, that if any excess is assessed on account
of any income which has been returned for taxation by any other tax-
payer, the department, with the consent of such other taxpayer, his
personal representatives or heirs, shall reduce the amount of the excess
assessed for each year by the amount of the income tax paid for that
year by such other taxpayer on account of the income in question. A
notice of such assessment shall be mailed to the taxpayer. The time
herein provided may be extended by agreement between the taxpayer
and the department.

(2) For the purpose of subsection (1) of this section a return

April 9 HOUSE OF REPRESENTATIVES 267

filed before the last day prescribed by law for the filing thereof shall
be considered as filed on such last day.

(3) It shall be the duty of every taxpayer to notify the depart-
ment in writing of every examination of his books and records with
respect to his net income as reported on his Federal income tax return
within thirty days after he has or should have had knowledge of the
beginning of such examination by the Internal Revenue Service. When
any taxpayer executes a waiver of the statute of limitations on defic-
iencies or over-assessment of Federal income taxes, he shall notify the
department in writing within thirty days from the date he signs such
waiver. Failure on the part of a taxpayer to notify the department with-
in the time prescribed of either of the above actions shall automatically
suspend the limitations set forth in subsection (1) above, until ninety
days after the department receives knowledge of such action.

Section 11. Section 141.300 of the Kentucky Revised Statutes
is amended to read as follows:

(1) Every individual shall, at the time prescribed in subsection
(3) of this section, make a declaration of his estimated tax for the tax-
able year if his gross income from sources other than wages upon which
Kentucky income tax will be withheld can reasonably be expected to
exceed one hundred dollars for the taxable year and his gross income
to be six hundred dollars or more.

(2) In the declaration required under subsection (1) the indi-
vidual shall state:

(a) The amount which he estimates as the amount of tax under
KRS 141.020 for the taxable year;

(b) The amount which he estimates as the credits for the taxable
year under KRS 141.310 and KRS 141.315;

(c) The excess of the amount estimated under subparagraph (a)
over the amount estimated under subparagraph (b), which excess
for purposes of this chapter shall be considered the estimated tax for
the taxable year;

(d) Such other information as may be prescribed in regulations
promulgated by the department.

(3) The declaration required under subsection (1) of this sec-
tion shall be filed with the department on or before April 15 of the
taxable year, except that if the requirements of subsection (1) of this
section are first met:

(a) After April 1 and before July 2 of the taxable year, the dec-
laration shall be filed on or before July 15 of the taxable year; or

(b) After July 1 and before November 2 of the taxable year,
the declaration shall be filed on or before November 15 of the taxable
year; Or

(c) After November 1 of the taxable year, the declaration shall
be filed on or before February 15 of the succeeding taxable year.

(4) An individual may make amendments of a declaration filed

268 JOURNAL OF THE April 9

during the taxable year under subsection (3) of this section, under
regulations prescribed by the department.

(5) If on or before February 15 of the succeeding taxable year
the taxpayer files a return for the taxable year for which the declara-
tion is required and pays in full the amount computed on the return as
payable then, under regulations prescribed by the department:

- (a) If the declaration is not required to be filed during the tax-
able year, but is required to be filed on or before such February 15,
such return shall, for the purposes of this section, be considered as
such declaration; and

(b) If the tax shown on the return, reduced by the credits under
KRS 141.850, is greater than the estimated tax shown in a declaration
previously made or, in the last amendment thereof, such return shall,
for the purposes of this section, be considered as the amendment of
the declaration permitted by subsection (4) of this section to be filed
on or before such February 15.

(6) The department shall promulgate regulations governing
reasonable extensions of time for filing declarations and paying the
estimated tax. Except in the case of taxpayers who are abroad, no such
extension shall be for more than six months.

(7) If the taxpayer is unable to make his own declaration, the
declaration shall be made by a duly authorized agent or by the guard-
ian or other person charged with the care of the person or property
of such taxpayer.

(8) For the purposes of KRS 131.190, a declaration of estimated
tax shall be held and considered a return of income under this chapter.

Section 12. Section 141.310 of the Kentucky Revised Statutes
is amended to read as follows:

(1) Every employer making payment of wages on or after July
1, 1956, shall deduct and withhold upon such wages a tax determined
in accordance with the tables set forth in KRS 141.360 or KRS 141.315,
as the case may be.

(2) If wages are paid with respect to a period which is not a
payroll period, the amount to be deducted and withheld shall be that
applicable in the case of a miscellaneous payroll period containing a
number of days, including Sundays and holidays, equal to the number
of days in the period with respect to which such wages are paid.

(8) In any case in which wages are paid by an employer with-
out regard to any payroll period or other period, the amount to be
deducted and withheld shall be that applicable in the case of a mis-
cellaneous payroll period containing a number of days equal to the
number of days, including Sundays and holidays, which have elapsed
since the date of the last payment of such wages by such employer
during the calendar year, or the date of commencement of employ-
ment with such employer during such year, or January 1 of such year,
whichever is the later.

April 9 HOUSE OF REPRESENTATIVES 269

(4) In determining the amount to be deducted and withheld
under this section, the wages may, at the election of the employer, be
computed to the nearest dollar.

(5) The tables mentioned in subsection (1) take into consider-
ation Federal income taxes levied at the effective rates for taxable
years beginning on or after January 1, 1954. If Congress changes sub-
stantially the effective rates, the department shall make such change
in these tables as necessary to compensate for any increase or decrease
in the effective Federal income tax rates.

(6) The department may permit the use of accounting machines
to calculate the proper amount to be deducted from wages when the
calculation so permitted produces substantially the same result set forth
in the tables contained in KRS 141.360. Prior approval of such calcu-
lation shall be secured from the department at least thirty days before
the first payroll period for which it is to be used.

(7) The department may, by regulations, authorize employers:

(a) to estimate the wages which will be paid to any employe in
any quarter of the calendar year;

(b) to determine the amount to be deducted and withheld upon
each payment of wages to such employe during such quarter as if the
appropriate average of the wages so estimated constituted the actual
wages paid; and

(ce) to deduct and withhold upon any payment of wages to such
employe during such quarter such amount as may be necessary to ad-
just the amount actually deducted and withheld upon the wages of
such employe during such quarter to the amount that would be re-
quired to be deducted and withheld during such quarter if the pay-
roll period of the employe was quarterly.

(8) The department is authorized to provide by regulation,
under such conditions and to such extent as it deems proper, for with-
holding in addition to that otherwise required under this section and
KRS 141.315 in cases in which the employer and the employe agree
to such additional withholding. Such additional withholding shall for
all purposes be considered tax required to be deducted and withheld
under this chapter.

Section 18. Section 141.325 of the Kentucky Revised Statutes
is amended to read as follows:

(1) An employe receiving wages shall on any day be entitled
to the following withholding exemptions:

(a) One exemption for himself;

(b) One exemption for each dependent for whom he would be
entitled to a tax credit under the provisions of KRS 141.020 (3) (c);

(c) Ifthe employe is married, the exemption to which his spouse
is entitled, or would be entitled if such spouse were an employe, under
subparagraph (a) of this subsection, but only if such spouse does not
have in effect a withholding exemption certificate claiming such ex-
emption.

270 JOURNAL OF THE April 9

(2) Every employe shall, on or before July 1, 1954, or before
the date of commencement of employment, whichever is later, furnish
his employer with a signed withholding exemption certificate relating
to the number of withholding exemptions which he claims, which in no
event shall exceed the number to which he is entitled.

(8) Withholding exemption certificates shall take effect as of
the beginning of the first payroll period ending, or the first payment
of wages made without regard to a payroll period, on or after the date
on which such certificate is so furnished; provided, that certificates
furnished before July 1, 1954, shall be considered as furnished on that
date.

(4) A withholding exemption certificate which takes effect under
this section shall continue in effect which respect to the employer until
another such certificate takes effect under this section. If a withholding
exemption certificate is furnished to take the place of an existing cer-
tificate, the employer, at his option, may continue the old certificate
in force with respect to all wages paid on or before the first status
determination date, January 1 or July 1, which occurs at least thirty
days after the date on which such new certificate is furnished.

(5) If, on any day during the calendar year, the number of
withholding exemptions to which the employe may reasonably be ex-
pected to be entitled at the beginning of his next taxable year is dif-
ferent from the number to which the employe is entitled on such day,
the employe shall in such cases and at such time as the department
may prescribe, furnish the employer with a withholding exemption
certificate relating to the number of exemptions which he claims with
respect to such next taxable year, which shall in no event exceed the
number to which he may reasonably be expected to be so entitled.

‘Exemption certificates issued pursuant to this subsection shall not take
effect with respect to any payment of wages made in the calendar
year in which the certificate is furnished.

(6) If, on any day during the calendar year, the number of
withholding exemptions to which the employe is entitled is less than
the number of withholding exemptions claimed by the employe on the
withholding exemption certificate then in effect with respect to him,
the employe shall, within ten days thereafter, furnish the employer
with a new withholding exemption certificate relating to the number
of withholding exemptions which the employe then claims, which
shall in no event exceed the number to which he is entitled on such
day. If, on any day during the calendar year, the number of withhold-
ing exemptions to which the employe is entitled is greater than the
number of withholding exemptions claimed, the employe may furnish
the employer with a new withholding exemption certificate relating to
the number of withholding exemptions which the employe then claims,
which shall in no event exceed the number to which he is entitled on
such day.

April 9 HOUSE OF REPRESENTATIVES 271

(7) Withholding exemption certificates shall be in such form
and contain such information as the department may by regulations
prescribe.

Section 14. Section 141.330 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Every employer required to deduct and withhold tax under
KRS 141.310 and KRS 141.315 shall, for the quarterly period beginning
July 1, 1954, and for each quarterly period thereafter, on or before the
last day of the month following the close of each quarterly period make
return and pay over to the department the tax required to be withheld
under KRS 141.310 and KRS 141.315. A return shall be filed by every
employer making payment of wages for each quarter in which wages
' were paid even though no tax has been withheld.

(2) If the department, in any case, has reason to believe that the
collection of the tax provided for in subsection (1) of this section is
in jeopardy, it may require the employer to make such return and pay
such tax at any time.

(3) Every employer, who fails to withhold or pay to the depart-
ment any sums required by this chapter to be withheld and paid, shall
be personally and individually liable therefor to the Commonwealth;
and any sum or sums withheld in accordance with the provisions of
KRS 141.310 and KRS 141.315 shall be deemed to be held in trust for
the Commonwealth.

(4) Actions for the recovery from an employer of sums required
to be withheld in accordance with KRS 141.310 and KRS 141.315 shall
be governed by the provisions of KRS Chapter 135. Any such action
shall be brought within three years after the due date of the return
required by subsection (1) of this section.

(5) The Commonwealth shall have a lien upon all the property
of any employer who fails to withhold or pay over to the department
sums required to be withheld under KRS 141.310 and KRS 141.315.
If the employer withholds but fails to pay the amounts withheld to
the department, the lien shall accrue as of the date the amounts with-
held were required to be paid to the department. If the employer fails
to withhold, the lien shall accrue at the time the liability of the em-
ployer becomes fixed.

Section 15. Section 141.360 of the Kentucky Revised Statutes
is amended to read as follows: ~
Unless the tax levied under KRS 141.310 is determined as pro-
vided in KRS 141.315, such tax shall be determined in accordance with
_ the following tables for all payments of wages made on and after
July 1, 1956.

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DEPARTMENT OF REVENUE

WITHHOLDING TAX TABLES

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And the number of withholding exemptions claimed is—

And the wages are

But less

The amount of tax to be withheld shall be—

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280 JOURNAL OF THE April 9

Section 16. Section 141.990 of the Kentucky Revised Statutes
is amended to read as follows:

(1) If any taxpayer fails or refuses to file a return or furnish
any information requested in writing by the department, the depart-
ment may make an estimate of the net income or adjusted net income
from any information in its possession, assess the tax at not more than
twice the amount estimated to be due and add a penalty of twenty-
five percent of the amount of any deficiency tax assessed concerning
such failure or refusal to file a return or furnish any information. This
penalty shall be in addition to all other applicable penalties in this
section.

(2) If any taxpayer fails to make and file a return required by
this chapter on or before the due date of the return or the due date as
extended by the department, then, unless it is shown to the satisfaction
of the department that the failure is due to reasonable cause, five
percent of the tax found to be due by the department shall be added
to the tax for each thirty days or fraction thereof elapsing between
the due date of the return and the date on which filed, but the total
penalty shall not exceed twenty-five percent of the tax.

(8) If any part of any deficiency is due to negligence, or in-
tentional disregard of rules and regulations but without intent to de-
fraud, five percent of the total amount of the deficiency, in addition
to the deficiency and other penalties provided in this section, shall
apply.

(4) If any part of any deficiency is due to fraud with intent
to evade tax, fifty percent of the total amount of the deficiency, in
addition to the deficiency and other penalties provided in this section,
shall apply.

(5) If the tax imposed by this chapter, whether assessed by the
department, or the taxpayer, or any installment or portion of the tax
is not paid on or before the date prescribed for its payment, there
shall be collected, as a part of the tax, interest upon the unpaid amount
at the rate of six percent per annum from the date prescribed for its
payment until payment is actually made to the department. If any
assessment made by the department is not paid within the time pre-
scribed, or protested in accordance with KRS 131.110, the taxpayer
shall pay as a penalty, in addition to the amount of the tax and other
applicable penalties, one percent of the tax for each month the tax
remains unpaid.

(6) Any person required under the provisions of KRS 141.150
or KRS 141.835 to furnish a statement required under that section who
wilfully furnishes a false or fraudulent statement, or who wilfully fails
to furnish a statement in the manner at the time and showing the in-
formation required under KRS 141.150 and KRS 141.335, shall for each
such failure be subject to a civil penalty of ten dollars. Such penalty
shall be assessed and collected by the department, and the assessment

April 9 HOUSE OF REPRESENTATIVES 28].

of such penalty may be reviewed only in the manner provided in
KRS 181.110.

(7) (a) Any employer required under the provisions of KRS
141.310 or KRS 141.315 to withhold taxes on wages and make quarterly
returns and payment of amounts withheld to the department, who
fails to withhold such taxes, or to make such returns, or who fails to
remit amounts collected to the department, shall be subject to a civil
penalty equal to twenty-five percent of the amount of taxes that should
have been properly withheld and paid over to the department for each
such failure. Such penalty shall be assessed and collected by the de-
partment and the assessment of such penalty may be reviewed only
in the manner provided in KRS 131.110.

(b) Any employer required to file a return under the provisions
of KRS 141.330 (1) when no tax should have been properly withheld,
and who fails to file the same, shall be subject to a civil penalty of ten
dollars for each violation. Such penalty shall be assessed and collected
by the department and the assessment of such penalty may be re-
viewed only in the manner provided in KRS 181.110.

(8) (a) In the case of a failure to make and file a declaration
of estimated tax within the time prescribed, unless such failure is shown
to the satisfaction of the department to be due to reasonable cause
and not to wilful neglect, there shall be added to the tax five percent
of each installment due but unpaid, and one percent of the unpaid
amount thereof for each month, except the first, or fraction thereof
during which such amount remains unpaid. In no event shall the
aggregate addition to the tax under this subparagraph with respect to
any installment due but unpaid, exceed ten percent of the unpaid
portion of such installment. For the purposes of this subparagraph, the
amount and due date of each installment shall be the same as if a dec-
laration had been filed within the time prescribed showing an esti-
mated tax equal to the correct tax reduced by the credit allowed by
KRS 141.350.

(b) Where a declaration of estimated tax has been made and
filed within the time prescribed, or where a declaration of estimated
tax has been made and filed after the time prescribed and the depart-
ment has found that failure to make and file such declaration within
the time prescribed was due to reasonable cause and not to wilful neg-
lect, in the case of a failure to pay an installment of the estimated tax
within the time prescribed, unless such failure is shown to the satisfac-
tion of the department to be due to reasonable cause and not to wilful
neglect, there shall be added to the tax five percent of the unpaid
amount of such installment, and, in addition, one percent of such un-
paid amount for each month, except the first, or fraction thereof during
which such amount remains unpaid. In no event shall the aggregate
addition to the tax under this subparagraph with respect to any in-
stallment due but unpaid, exceed ten percent of the unpaid portion
of such installment.

282, JOURNAL OF THE April 9

(9) If eighty percent of the tax, determined without regard to
the credit under KRS 141.350, in the case of individuals other than
farmers exercising an election under subsection (5) of KRS 141.805,
or sixty-six and two-thirds percent of such tax so determined in the
case of such farmers, exceeds the estimated tax, increased by such
credit, there shall be added to the tax an amount equal to such excess,
or equal to six percent of the amount by which such tax so determined
exceeds the estimated tax so increased, whichever is the lesser. This
subsection shall not apply to the taxable year in which falls the death
of the taxpayer, nor shall it apply to the taxable year in which the tax-
payer makes a timely payment on April 15, July 15 and November 15,
of such year, or in the case of farmers exercising an election under
subsection (5) of KRS 141.805 within the last quarter, and making
payment in an amount at least as great as though computed on the
basis of the facts shown on his return for the preceding taxable year.

(10) Any penalty imposed by subsections (1), (2), (3), (4),
(5), (6), (7), (8), or (9) of this section shall be assessed, collected,
and paid in the same manner as if it were a deficiency.

(11) Every tax imposed by this chapter, and all increases, in-
terest and penalties thereon, shall become, from the time it is due and
payable, a personal debt to the state from the taxpayer or other person
liable therefor.

(12) In addition to the penalties herein prescribed, any taxpayer
or employer, who wilfully fails to make a return or wilfully makes
a false return, or who wilfully fails to pay taxes owing or collected,
with intent to evade payment of the tax or amounts collected, or any
part thereof, shall upon conviction thereof be fined not less than five
hundred dollars nor more than five thousand dollars, or confined in
the penitentiary for not less than twelve months nor more than five
years, or both.

Section 17. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) Every individual and fiduciary reporting on a calendar year
basis shall be permitted to deduct from the annual tax shown on his
return of income for 1956 only, a sum equal to six percent of the tax
due.

(2) Every individual and fiduciary reporting on a fiscal year
basis and whose fiscal year begins on February 1, 1956, or on March
1, 1956, shall be permitted to deduct from the annual tax shown on his
return of income for those fiscal years only, a sum equal to five and
one-half percent and five percent, respectively, of the tax due.

Section 18. Section 141.060 of the Kentucky Revised Statutes
is hereby repealed.

Section 19. Unless otherwise provided herein, the provisions of
this Act shall be applicable to all individuals, fiduciaries and partner-
ships, for all taxable years beginning on or after January 1, 1956. With

April 9 HOUSE OF REPRESENTATIVES 283

respect to all taxable years beginning before January 1, 1956 the pro-
visions of KRS Chapter 141 as they existed immediately prior to the
enactment of this Act, shall remain applicable for all individuals,
fiduciaries and partnerships, the same as though they had had not been
amended or repealed by this Act.

Unless otherwise provided herein the provisions of this Act shall
be applicable to all corporations for all taxable years ending on or
after June 80, 1956. With respect to all taxable years ending
on or before May 31, 1956, the provisions of KRS Chapter 141, as they
existed immediately prior to the enactment of this Act, shall remain ap-
plicable for all corporations, the same as though they had not been
amended by this Act.

Section 20. Whereas, it is to the best interest of the people of the
Commonwealth of Kentucky that the provisions of this Act take effect
at the earliest possible date, an emergency is declared to exist and
this Act shall become effective immediately upon its passage and
approval by the Governor.

HB 2: AN ACT relating to revenue and taxation.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1.

(1) As of December 31, 1957, and each year thereafter, all in-
tangible personal property of individuals residing in this state and of
corporations organized under the laws of this state, wherever located,
and all intangible personal property having a business situs in this
state, including notes, bonds, accounts, money on deposit, other than
in banks or trust companies, and other credits, whether secured by
mortgage pledge or unsecured, and shares of stock and any right to
receive income, except for such intangible property that is now assessed
by the Department of Revenue, shall be listed at face value with the
Department of Revenue. Money in hand, cashier's checks, certified
checks, officer’s drafts, and other cash items and deposits belonging to
a resident of Kentucky in national banks not of this state or in any
bank, trust company, or combined bank and trust company not or-
ganized under the laws of this state, shall be listed at face value and
assessed at fair cash value with the Department of Revenue as of
September 1, 1957 and each year thereafter. In the case of securities
which are regularly bought and sold through stock exchanges, the
closing price at which such property sold on the assessment day shall
be prima facie evidence of both the face and fair cash value of such
property.

(2) Nothing in paragraph (1) shall forbid local taxation of
franchise of corporations or of the shares of banks, trust companies
or combined banks and trust companies doing business in this state,
or domestic life insurance companies.

284 JOURNAL OF THE April 9

(3) The property required to be listed under paragraph (1)
shall be reported on forms prescribed by the Department of Revenue.

Section 2,

The owner shall report the property required to be listed under
Section 1 at its face value; assess it at fair cash value; and compute
the tax at the rate of forty cents per one hundred dollars of assessed
valuation. This report, together with the tax due, shall be filed with the
Department on or before April 15, 1958, and on or before April 15
of each year thereafter.

Section 3.

(1) If any taxpayer fails to make and file the report required by
this Act on or before the due date of the report, or the due date as
extended by the Department, or fails to pay the tax when due, a
penalty of five per cent per month, not to exceed ten per cent, of the
tax found to be due by the Department shall be added to the tax for
each thirty days or fraction thereof for which the taxpayer is in default
either in making the report or in paying the tax, or both, elapsing
between the due date of the return and the date on which filed, plus
interest on the amount due at the rate of one-half of one per cent for
each thirty-day period or fraction thereof.

(2) Where the Department discovers that the owner of in-
tangible personal property has failed to file a report or has failed to
list all such taxable property on his report by April 15 of 1958 or April
15 of any year thereafter, or has failed to file a report or has failed
to list all such taxable property on his report for any year ten years
prior to the date of discovery, such property shall be deemed omitted.
If, after demand by the Department, any taxpayer refuses to volun-
tarily list such property, the Department shall make an estimate of
the fair cash value of the property and assess it for taxation. All
omitted property that should have been assessed prior to July 1, 1949
and January 1, 1957 shall be subject to the same penalties and rate of
interest as provided by law for the years when the property was not
assessed. After January 1, 1957, a penalty of twenty-five per cent of
the tax due plus interest at the rate of one-half of one per cent for each
thirty days or fraction thereof from the date due until paid shall be
added for each year the property was omitted in addition to the
penalties provided in paragraph (1) of this section.

(3) If any part of any deficiency is due to fraud, with intent to
evade, fifty per cent of the total amount of the deficiency in addition
to the deficiency and all other penalties and interest provided in this
section shall apply.

(4) Nothing in this Act shall prevent the Department from
estimating the fair cash value of omitted intangible property; assess-
ing it for taxation; and requiring payment of the tax, penalties and
interest due, as provided in paragraph (2), from the person assessed
between January 1, 1957 and December 31, 1957.

April 9 HOUSE OF REPRESENTATIVES 285

Section 4.

Any taxpayer aggrieved by any action under this Act by the
Department of Revenue may protest such action and appeal to the
Kentucky Tax Commission and the Franklin Circuit Court, as pro-
vided in KRS 131.110, 131.120 and 131.125.

Section 5.

The Department of Revenue shall administer the provisions of
this Act and make all rules and regulations necessary for its enforce-
ment and may make jeopardy assessments as provided in KRS 131.150.

Section 6. Section 132.020 of the Kentucky Revised Statutes is
amended to read as follows:

An annual ad valorem tax for state purposes of five cents upon
each one hundred dollars of value of all real property directed to
be assessed for taxation, and five cents upon each one hundred
of value of all tobacco directed to be assessed for taxation, and
forty cents upon each one hundred dollars of value of all money in
hand, shares of stock, notes, bonds, accounts, money on deposit, and
other credits, whether secured by mortgage, pledge or otherwise, or
unsecured, five cents upon each one hundred dollars of value of
unmanufactured agricultural products, and fifty cents upon each one
hundred dollars of value of all other property directed to be assessed
for taxation shall be paid by the owner or person assessed except as
provided in KRS 182.030, 132.050, 132.200, 136.270, 136.300, 136.320
and other sections providing a different tax rate for particular property.

Section 7. Section 132.050 of the Kentucky Revised Statutes is
amended to read as follows:

An annual tax at the rate of ten cents on each one hundred dollars
of the fair cash value, based upon the assessed value as of December
31, 1957, and each year thereafter, of all items of direct or contingent
indebtedness of customers to brokers making purchase or sales of
securities for them in margin transactions shall be paid by such
brokers. This tax shall be for state purposes only, and in lieu of all
other ad valorem taxes by the state or by any county, city or other
taxing district on such indebtedness to brokers. The assessment, equal-
ization and collection of the tax shall be governed by the general laws
applicable to intangible personal property other than that referred to
in KRS 132.060,

Section 8. Section 132.215 of the Kentucky Revised Statutes is
amended to read as follows:

(1) To the extent that the present right to receive income for
the period of a life or lives, or other indeterminate period, may be held
to be subject to assessment and taxation, the sole basis of the assess-
ment value shall be the fair cash value estimated at the price that the
particular right to receive income in question would bring at a fair
voluntary sale.

286 JOURNAL OF THE April 9

(2) To the extent that a present right to receive income from
any source for a life or lives or other indeterminate period, including
the right to receive installment payments, even though for a deter-
minate period, under the terms of a life insurance policy, payable by
reason of the death of the insured, may be held to be subject to assess-
ment for ad valorem taxes, the owner or person enjoying such right
on December 31, 1957, and each year thereafter, shau pay a tax to
the state of five cents upon each one hundred dollars of the fair cash
value of his right on the assessment date, estimated at the price such
right would bring at a fair voluntary sale. No other tax shall be
assessed by the state or by any county, city, school district, or other
taxing district on any such right, or against the holder of any such
right on account thereof.

Section 9. Section 132.220 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Unmanufactured tobacco insofar as it is subject to taxation
by KRS 182.190 and 132.200 shall be listed, assessed and valued as of
September 1 of each year. All other taxable property and all interest
in other taxable property, unless otherwise specifically provided by
law, shall be listed, assessed and valued as of January 1 of each year.
It shall be the duty of all persons owning or having any interest in
any property subject to county or other district taxation in this state
to list or have listed such property with the county tax commissioner
of the county where it is located, between January 1 and March 1 in
each year, except as otherwise provided by law. All persons in whose
name property is properly assessed shall remain bound for the tax,
notwithstanding they may have sold or parted with it.

(2) Any taxpayer who has a reasonable excuse for not listing
his property before the county tax commissioner or his deputy may
appear before any person authorized to administer an oath and make
the necessary affidavit required by the schedule as to the value of his
property and may then return the schedule to the county tax com-
missioner. This shall be a compliance with the law in his particular
case.

(3) Real property or any interest therein shall be listed in the
taxing district where it is located, by the owner of the first freehold
estate therein, and it shall be assessed without reference to conflicting
title. If the owner fails to list the property, the county tax commis-
sioner shall nevertheless assess it. The county tax commisioner may
swear witnesses in order to ascertain the person in whose name to
make the list.

(4) Real property shall be assessed in the name of the owner,
if ascertainable by the tax commissioner, otherwise, in the name of the
occupant, if ascertainable, and, otherwise, to “Unknown owner.” The
undivided real estate of any deceased person may be assessed to the
heirs or devisees of such person without designating them by name.

April 9 HOUSE OF REPRESENTATIVES 287

(5) Beginning in the year 1951, all real property exempt from
taxation by Section 170 of the Constitution shall be listed with the
county tax commissioner in the same manner and at the same time as
taxable real property. The county tax commissioner shall maintain an
inventory record of such tax exempt property, but such property shall
not be placed on the tax rolls.

Section 10. Section 132.280 of the Kentucky Revised Statutes
is amended to read as follows:

(1) Every person listing his property with the county tax com-
missioner shall state:

(a) Each separate tract of land, with the number of acres in
each tract; the value per acre; each of the improvements thereon; the
name of the nearest resident thereto; where located, giving the election
precinct in which it is located; the number of each city lot and the
improvements thereon, in what city, on which street, the value of
each, and the value of the improvements thereon to the extent that
they enhance the value of each lot; whether there is any land adjoin-
ing his owned by a non-resident of the county or state, giving the
name and place of residence of any such owner, if known;

(b) The number of livestock, their type, species and value;

(c) All other property subject to county or other district taxa-
tion owned by him with the value thereof on January 1 of the year
for which the assessment is made, unless otherwise provided by
law; and

{d) Such other facts as may be required in the blanks provided.

(2) An error or informality in the description or location of the
property, or in the name of the owner or person assessed, shall not
invalidate the assessment if the property can with reasonable certainty
be located or identified from the description given, in which case the
collector may receive the taxes and by his receipt correct the error or
informality.

Section 11. Section 132.270 of the Kentucky Revised Statutes is
amended to read as follows:

Every person engaged in the business of receiving property in
pledge or as security for money or other things advanced to pawners
or pledgers shall return, under oath, the fair cash value of all property
so pledged and held on January 1 of each year. Any intangible personal
property shall be listed and the tax paid to the Department of Revenue
as of December 31, 1957 and each year thereafter. Taxes shall be
assessed on the value of such property to the person holding it as on
other property owned by him and he shall have a lien on the property
to secure the amount of tax due.

Section 12. Section 182.290 of the Kentucky Revised Statutes is
amended to read as follows:
(1) Any property which has not been listed for taxation with

288 JOURNAL OF THE April 9

the county tax commissioner for any year in which it is taxable by the
time the board of supervisors completes its work for that year shall
be deemed omitted property.

(2) All omitted property that should have been assessed by the
county tax commissioner may be assessed retroactively in the manner
provided by law at any time within five years from the date when it
became omitted, but the lien thereby accruing on any such property
except real property shall not prejudice the rights of bona fide pur-
chasers acquired in the meantime.

(3) All omitted property that should have been listed and
assessed shall be subject to a penalty of ten per cent of the amount of
the taxes, and interest at one per cent per month from the date when
the taxes would have become delinquent had the property been listed
as required by law, until the date the tax bill is prepared in accordance
with KRS 133.230. When the property is assessed retroactively by
action prosecuted in the manner provided by KRS 182.330 and 132.340,
an additional penalty of twenty per cent of the amount of the original
tax, interest and penalty shall be collected for the purpose provided
in KRS 134.400 and paid into the State Treasury. All other penalties
and interest shall be distributed in the same manner as the tax.

Section 13. Section 132.300 of the Kentucky Revised Statutes
is amended to read as follows:

In addition to the penalties provided in Section 3 of this Act,
failure to list any note, account or bond shall be a bar to any action
upon the note, account or bond in any court and may be pleaded as
a complete defense, but the holder thereof may at any time pay all
taxes, penalties and accrued interest and thereupon be relieved from
the defense.

Section 14. Section 132.330 of the Kentucky Revised Statutes
is amended to read as follows:

The field agents, accountants and attorneys of the Department of
Revenue shall cause to be listed for taxation all property omitted by
the county tax commissioners, board of supervisors, Kentucky Tax
Commission acting as a board of valuation and assessment, or any
other assessing authority, for any year omitted. The agent, accountant
or attorney proposing to have the property assessed shall file in the
office of the county clerk of the county in which the property may be
liable to assessment a statement containing a description and value of
the property or corporate franchise proposed to be assessed, the name
and place of residence of the owner, his agent or attorney, or person
in possession of the property, if known, and the year the property was
unassessed. The county clerk shall thereupon issue a summons against
the owner, or person in possession of the property if the owner is un-
known, to show cause before the next regular term of the county court
that does not commence within five days after the service of the
summons, why the property or corporate franchise shall not be assessed

April 9 HOUSE OF REPRESENTATIVES 289

at the value named in the statement filed. No judgment shall be
rendered against the alleged owner unless the statement filed contains
a description of the property sought to be assessed that will enable
the court to identify it. The summons shall be executed by the sheriff
by delivering a copy thereof to the owner, or if he is not in the county
to his agent, attorney or person in possession of the property. If the
property is real property, and the owner is known but is absent from
the state and has no attorney or agent in this state and no one is in
possession of the property, the summons shall be served by posting it
in a conspicuous place upon the property; if the property consists of
tangible personal property the summons shall be placed in a con-
spicuous place where the property is located. In the case of tangible
property, where the owner and his place of residence are unknown and
no one has possession of the property, an action for assessment shall be
instituted by filing the petition above mentioned and procuring con-
structive service against the owner under the provisions of the Rules
of Civil Procedure, In all of the above cases an attachment of the
property omitted from assessment may be procured against the
owner, at the time of the institution of the action or thereafter, and
without the execution of a bond by the Commonwealth or its relator,
by the representative of the Department of Revenue making an
affidavit that the property described in the petition is subject to state,
county, school or other taxing district tax, and is unassessed for any
taxable year.

Section 15. Section 132.360 of the Kentucky Revised Statutes
is amended to read as follows:

(1) Any assessment of accounts receivable, notes, stocks, bonds
or any right to receive income listed with the county tax commissioner
or Department of Revenue may be reopened within two years after
the date as of which they were assessed, unless the assessed value
thereof is the face value in the case of accounts receivable and notes or
the quoted value in the case of stocks and bonds, or has been estab-
lished by a court of competent jurisdiction. If upon reopening the
assessment the department finds that the assessment was less than the
fair cash value and should be increased, it shall give notice thereof to
the taxpayer, who may within twenty days thereafter protest to the
department and offer evidence to show that no increase should be
made. After the department has disposed of the protest, the taxpayer
may appeal from any such additional assessment as provided by
KRS 131.110, 131.120 and 131.125.

(2) Upon such assessment becoming final, the department shall
bill to the taxpayer the amount due. The tax bill shall be subject to the
penalties provided in Section 3 (1) of this Act.

Section 16. Section 132.450 of the Kentucky Revised Statutes is
amended to read as follows:
(1) Each county tax commissioner shall assess at its fair cash

290 JOURNAL OF THE April 9

value all property which it is his duty to assess. The property of one
person shall not be assessed wilfully or intentionally at a lower or
higher relative value than the same class of property of another, and
any grossly discriminatory valuation shall be construed as an in-
tentional discrimination. The tax commissioner shall make every effort,
through visits with the taxpayer, personal inspection of the property,
from records, from his own knowledge, form information in property
schedules and from such other evidence as he may be able to obtain,
to locate, identify and assess property.

(2) If the tax commission assesses any property at a greater
value than listed by the taxpayer or assesses unlisted property, the
tax commissioner shall serve notice on the taxpayer of such action.
The notice shall be given by registered mail or as provided in the Rules
of Civil Procedure, When notice is given by registered mail the tax
commissioner shall secure a return receipt, and shall be allowed postal
cost for each notice so served, upon presentation of the return receipt
to the department.

(3) Any taxpayer may designate on the property schedule any
property which he does not consider to be subject to taxation and it
shall be the duty of the tax commissioner to obtain and follow advice
from the Department of Revenue relative to the taxability of such

property.

Section 17. Section 132.490 of the Kentucky Revised Statutes
is amended to read as follows:

(1) Each county clerk shall, by March 1 of each year, unless
the time is extended by the Department of Revenue, make to the
Department of Revenue a statement of all purchase money notes,
mortgage notes and other obligations for money due, except those
owned by banks, trust companies or real estate title insurance com-
panies, as shown by the conveyances, mortgages and liens in his
office as of the assessment date. The statement shall show the dates
of execution and maturity of the notes or other evidences of indebted-
ness, the consideration, the date of filing or recording, the amount,
and the name and address of the owner, payee, beneficial holder
thereof or other person liable for taxes thereon.

(2) The clerk shall submit a bill itemizing the cost of preparing
the statement required in paragraph (1). Upon approval by the De-
partment of Revenue, the clerk shall be reimbursed out of the State
Treasury.

Section 18. Section 132.520 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Every bank, trust company, combined bank and trust com-
pany, and real estate title insurance company doing business in this
state:shall, by February 1, 1958 and each year thereafter, unless the
time is extended by the Department of Revenue, file with the depart-

April 9 HOUSE OF REPRESENTATIVES 291

ment a report sworn to by its president, vice-president, treasurer or
cashier, showing as of December 31, 1957 and each year thereafter:

(a) A list of the notes, bonds, or other evidences of indebtedness
secured by mortgage or other recorded instrument standing in its
name of record that it has assigned or transferred during the preceding
year without making a transfer of record, the amount of each, and
the name and address of the person to whom each was assigned. Where
the name and address of the transferee holding the securities on
December $1 of any year is given, any previous transfers of the
securities during that year need not be furnished.

(b) A list of the mortgages standing in its name on December
31 that were assigned of record to it during the preceding year with
its knowledge and consent, where it has not become the absolute
owner of the debt secured thereby, showing the amount of each such
mortgage and the name and address of each assignor. Any mortgage
assigned to it during any year and paid and released of record prior
to December 31 need not be included in the report.

(c) A list of all debenture bonds, collateral trust bonds, notes,
certificates and other evidences of indebtedness issued, assigned or
transferred by it during the preceding year that are secured by and
represent the beneficial interest in stocks, lien notes, bonds or mort-
gages standing in its name of record, the amount of each such
evidence of indebtedness, and the name and address of the person to
whom each was assigned or transferred. Where the name and address
of the transferee holding the securities on December 31, of any year

is given, any previous transfer or assignment of the securties need not
be furnished.

(d) A list of all stocks, lien notes, bonds, mortgages, certificates
and other evidences of indebtedness that it has assigned or transferred
to any person as security for the issuing of any debenture or collateral
trust bonds, the amount of each, and the name and address of the
person to whom each was assigned.

(2) The reports required under paragraphs (a) and (b) of
subsection (1) of this section need not include sales or pledges from
one bank, trust company or combined bank and trust company to
another such bank or company, or notes or obligations secured by any
recorded instrument executed to a bank, trust company or a combined
bank and trust company in which the obligations secured by the in-
struments are divided among estates or accounts in charge of the bank
or company and regularly and properly entered on its records, The
provisions of this section do not apply to mortgages made by corpora-
tions to trustees to secure bond issues made by them in the regular
course of business, except as provided in paragraph (c) of subsection
(1) of this section.

Section 19. Section 183.040 of the Kentucky Revised Statutes
is amended to read as follows:

292 JOURNAL OF THE April 9

The county tax commissioner shall complete the tax roll of all
property in his county before May 1 of each year, in accordance with
law, and on or before that date he shall file with the Department of
Revenue, on blanks to be forwarded by the department, a recapitula-
tion of all property assessed on said tax roll with his official certificate
attached thereto. Such recapitulation shall show the assessment of
property by types of property and by taxing districts. Within two
weeks after receiving the recapitulation the Department of Revenue
shall direct the tax commissioner to make the changes that are neces-
sary to correct the assessment.

Section 20. Section 134.020 of the Kentucky Revised Statutes is
amended to read as follows: ;

(1) All state, county and district taxes, except as otherwise
provided by law, shall be due and payable on September 15 following
the assessment except that all taxes based on any assessment date in
the years 1948 and 1949, and all taxes in any year on unmanufactured
tobacco, shall be due and payable on the second succeeding Septem-
ber 15 following the assessment, unless otherwise provided by law.

(2) Any taxpayer who pays his state, county, or district taxes on
property assessed by the county tax commissioner by November 1
after they become due in any year shall be entitled to two per cent
discount thereon, and the sheriff shall allow the discount and give a
receipt in full to the taxpayer. The sheriff may, at any time after the
taxes mentioned in this section become due, receive less than the face
amount of the tax bill as a credit on the amount due, including the
amount of any penalties then due, and every such payment shall be
credited upon the tax bill or upon sheets annexed thereto for that
purpose, and acknowledged in writing or by a rubber stamp, indicating
the amount so paid to the sheriff.

(3) All state, county and district taxes, except as otherwise pro-
vided by law, shall become delinquent on January 1 following their
due date, except that taxes due on September 15, 1949 shall not be-
come delinquent until March 1, 1950.

(4) Any taxes which are not paid by the date when they be-
come delinquent shall be subject to a penalty of six percent on the
taxes due and unpaid; except that taxes which become delinquent on
January 1 shall be subject to a penalty of only two per cent on the ©
taxes due and unpaid, if paid on or before the last day of January. The
sheriff shall collect the penalty and account for it as he is required to
collect and account for taxes.

Section 21. Sections 132.240, 132.320 and 132.500 are hereby
repealed.

Section 22.
(1) The county tax commissioner shall not assess any intangible
personal property for the year 1957 or any year thereafter.

April 9 HOUSE OF REPRESENTATIVES 298

(2) It is the intent of the General Assembly that the transfer of
the assessment of intangible personal property from the county tax
commissioner to the Department of Revenue will enable the county
tax Commissioner to better perform his local assessment duties and the
Department of Revenue to improve the administration of the intangible
personal property tax. Consistent with this objective, the compensa-
tion, allowance for deputy hire, and other authorized expenses of the
county tax commissioner’s office shall not be reduced. In the compu-
tation of the amount to be paid the county tax commissioner for the
property tax year 1957 and each year thereafter, there shall be in-
cluded in the base, as provided in Section 182.590 of the Kentucky
Revised Statutes, an amount equal to the value of intangible personal
property certified to the county clerk for the property tax year of 1956.

(3) In the computation of the amount to be paid the sheriff for
the property tax year 1957 only there shall be included in the base,
as provided in Section 184.290 of the Kentucky Revised Statutes, an
amount equal to the intangible property tax assessment in the year
1956 times the 1956 tax rate times four per cent.

Section 28.
This Act shall become effective January 1, 1957.

HB 3: AN ACT relating to revenue and taxation and the recording
of deeds and conveyances.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. In addition to any taxes levied under KRS 142.010, a
tax for state purposes of ten cents for each one hundred dollars, or
fraction thereof, is hereby levied on every deed, bill of sale, or other
instrument which conveys any real proper or any interest in any
real property in this state—except such transters exempted by this Act
~which is executed and offered for record in the office of the county
court clerk on or after January 1, 1957. Said tax to be paid by the
grantee, is to be based on the consideration of the deed or the actual
value of the property conveyed, whichever is greater. Upon deeds
conveying property lying partly within this state and partly without
this state, the tax shall apply only to the value of so much of the
property conveyed as is situated in Kentucky.

Section 2. The county court clerk shall collect the tax at the
time the deed or instrument is offered for record. No deed or instru-
ment subject to the tax herein shall be admitted to record without the
payment of the tax. The county court clerk shall record on the face
of the deed the amount of tax that has been paid and shall cause this
fact also to be entered at the deed book and page wherein the deed
is recorded. In case the real estate transferred is located in more than
one county in Kentucky, the entire tax shall be paid to the county court

204 JOURNAL OF THE April 9

clerk, of the county in which the deed is first offered for record. The
instrument may then be recerded in the office of any other county
court clerk without payment of any further such tax.

Section 8. Deeds or instruments covering property which is
exempt to the grantee under No. 170 of the Kentucky constitution
shall be exempted from the payment of the transfer tax. Deeds of
correction and quit claim deeds wherein no additional consideration
is involved shall also be exempt. Transfers between husband and wife
and parents and children shall be exempt.

Section 4. Before the tax is paid, the grantee shall execute in
duplicate an affidavit setting forth the following information: The
name and address of the grantor; the name and address of the grantee;
a brief description of the property transferred; its location by taxing
jurisdiction; the date of sale; the sale price, including any assumed
mortgages or liens, or the value of the property, whichever is greater;
any reason for claiming the transfer to be tax-exempt. This affidavit
shall be used by the county court clerk in his computation of the tax.
The county clerk will record on the affidavit the deed book and page
at which the instrument is recorded. By the tenth day of each month,
the county clerk shall send the original of the affidavits filed during
the preceding month along with the tax collected by him to the
Department of Revenue. He shall be allowed to deduct a 5% com-
mission for his expenses in collection. The duplicate copies of the
affidavits shall be retained on file by the county clerk for at least
three years.

Section 5. Any false statement made in the affidavit required
by Section 4 of this Act shall incur the penalty for false swearing
under the provision of KRS 482.170.

Section 6. Any county clerk who willfully fails to record the
affidavit and collect the tax due shall be fined not less than $10 or
more than $100.

Section 7. The Department of Revenue shal] provide by rules
and regulations for the administration of this Act.

Section 8. This Act shall become effective January 1, 1957.

HR 3: A CONCURRENT RESOLUTION memorializing Congress
to reduce the tax burden on the major industries of the Commonwealth
of Kentucky.

WHEREAS, the imposition of inequitable and onerous tax burd-
ens on the major industries of any state is patently contrary to sound
public policy and sound principles of economics; and

WHEREAS, the imposition of burdensome taxes not only has an
undesirable effect upon industry and the community but also deprives
the state of a source of desperately needed revenue; and

April 9 HOUSE OF REPRESENTATIVES 295

WHEREAS, two of the Commonwealth of Kentucky's major
industries, distilling and tobacco, are presently burdened with unjust,
unfair and economically unwise taxes by the Government of the United
States; and

WHEREAS, it appears that, in the best interests of not only the
citizens of this Commonwealth but of those of the other forty-seven
states as well, relief from this tax burden should be granted; and

WHEREAS, such relief can only be afforded by appropriate action
by the Congress of the United States of America,

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky, the Senate concurring therein:

Section 1. That the Congress of the United States act in the
exercise of its broad legislative powers to reduce and alleviate the
pressing burden of taxes presently being borne by the distilling and
tobacco industries in the Commonwealth of Kentucky.

Section 2. That copies of this resolution be sent by the Clerk
of the House to the President and Chief Clerk of the Senate of the
United States, the United States Senators from Kentucky, the Speaker
and Chief Clerk of the House of Representatives of the United States,
and the Representatives in Congress from Kentucky.

Representative Morgan moved to adjourn until 1:00 P.M., April
10, 1956. Agreed.

296 JOURNAL OF THE April 10

TUESDAY, APRIL 10, 1956
FOURTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend H. Glenn Stephens of the South Frank-
fort Presbyterian Church, Frankfort.

The roll was called. All present except Billington, Blue, Bridgers,
Buchanan, Bush, Embry, Durham W. Howard, Isler, Lynn A. Jennings,
Martin, Melton, Murphy, Nunnelley, Qualls, Rayburn, John B. Reed,
Sloan, Stith, Thomas, Walsh, Weintraub, and Williamson, who were
granted leaves of absence on motion of Representative Morgan.

Reading of the Journal for April 9, 1956, dispensed with and the
same approved on motion of Representative Burnley.

Calendar
HB 1, HB 2, HB 3 and HR 8 were taken from the Calendar and
read at length for the second time. Ordered placed in Orders of the
Day.

Introduction of Bills

HB 15, by Representative Cottengim: AN ACT relating to revenue
and taxation.

HB 16, by Representative Day: AN ACT relating to annexation or
reduction of territory by sixth-class cities.

HB 17, by Representative Caudill: AN ACT relating to revenue
and taxation.

HB 18, by Representative Hilton: AN ACT relating to revenue
and taxation.

HB 19, by Representative Everett: AN ACT relating to revenue
and taxation.

HB 20, by Representative McCallum: AN ACT relating to revenue
and taxation.

HB 21, by Representative Davidson: AN ACT relating to revenue
and taxation.

HB 19, HB 20, HB 21 referred to Rules Committee.

Representative Morgan moved the rules be suspended to make a
motion. Agreed.

April 10 HOUSE OF REPRESENTATIVES 297

Report of Committee
Committee on Rules reported HB 4, HB 5, HB 7, and HB 9 with
the expression of opinion that the same should pass. Read at length for
the first time and ordered placed in the Calendar.

HB 4: AN ACT relating to and levying a license tax on the privi-
lege of issuing or using trading stamps as herein defined; defining
certain terms as used in this act; requiring that certain information be
printed upon the face of trading stamps and upon the books and
other devices furnished for the collection of trading stamps by holders
thereof; providing for the redemption of trading stamps; providing for
the escheat of trading stamps not redeemed; and providing for pen-
alties for the violation of this Act.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. As used in this Act unless the context requires other-
wise:

(a) The word “person” shall include an individual or individuals,
firms, corporations, partnerships, (including limited partnerships),
companies, associations, joint ventures, trusts, business trusts, syndi-
cates, fiduciaries, governmental units, departments and agencies, and
every other natural or artificial authority or group of every kind or
nature whatsoever.

(b) “Trading stamp” means and includes any form of stamp,
ticket, card, receipt or any similar device or devices, that is either di-
rectly or indirectly issued, sold, given or otherwise furnished or de-
livered by any person to any other person within the Commonwealth
of Kentucky in connection with or as part of the sale and purchase of
any goods, services, or output of a service trade, and which entitles
the purchaser receiving the same with such sale and purchase of goods
or services, or the holder thereof, to procure or otherwise receive from
any person money, goods or anything of value, free or without charge,
upon the production or presentation of any number or a stated number
of said stamps as herein defined; but an offer made or endorsed by
the manufacturer from, as a part of, or within the original wrapped
package or container in which goods are sold, of a premium or a
reward for the return to the manufacturer of such goods, or to any
dealer in such goods, of all or any part of that label or container, or
any coupon placed in or attached to such label or container, is not a
trading stamp.

(c) The word “issurer” shall mean any person who issues, gives,
sells, or otherwise distributes or furnishes any trading stamp to any
merchant or dealer in goods or any supplier of services for issue by
such merchant, dealer, or supplier in connection with the sale of goods
or services.

Section 2. (1) Every person who in connection with the sale by

298 JOURNAL OF THE April 10

him of goods, wares, or merchandise of any kind, issues, sells, gives
away or otherwise distributes trading stamps which are redeemable,
or will be accepted in whole or partial payment or exchange for any-
thing of value, either by the issurer or by other persons, shall in
addition to all other taxes, pay to the Department of Revenue on each
separate place of business, in which any part or phase of such issuance,
sale, gift or other distribution of such trading stamps, occurs, an
annual license tax as follows: If such person’s gross volume of business
in such separate place of business for the last preceding calendar year
was less than $125,000, the sum of $300, if $125,000 or more, but less
than $250,000, the sum of $600; if $250,000 or more, but less than
$500,000, the sum of $1,200; if $500,000 or more, but less than $1,-
000,000, the sum of $2,400; if $1,000,000 or more but less than $1,-
500,000, the sum of $3,200; and if $1,500,000 or more, the sum of $4,000.
The tax levied in this subsection shall not apply to persons issuing
coupons or certificates furnished by a manufacturer or compounder as
a part of an original package or item of merchandise and distributed
in connection with that one commodity only, nor to persons issuing
coupons or certificates exclusively on one private brand product only.

(2) Every person who engages in or carries on the business of
issuing, lending, licensing or selling to merchants or vendors, trading
stamps which are redeemable or will be accepted in whole or partial
payment, or in exchange, for anything of value by anyone whomsoever,
shall pay to the Department of Revenue, in addition to all other taxes,
an annual license tax of five percentum of the gross receipts of such
business and such license tax shall in no event be less than $5,000 per
annum. The said tax shall be paid in the following manner: The person
desiring to engage in such business shall also at the same time execute
a bond payable to the Commonwealth of Kentucky in such sum and
form as is acceptable to the Department of Revenue, which shall in-
sure the payment of said five percentum tax; such person shall there-
after and before the fifteenth day of the state’s next fiscal year render
to the Department of Revenue a sworn statement showing the gross
amount received by such person for issuing, lending, licensing, selling,
redeeming or exchanging trading stamps, and if it appears that such
five percentum of the amount so received exceeds $5,000, then such
person shall pay to such Department an additional amount equivalent
to the amount by which such five percentum exceeds the sum of $5,000.

Section 38. (1) No person shall issue, give, use, sell, or otherwise
distribute or furnish or offer to issue, give, use, sell, or otherwise
distribute or furnish trading stamps, or redeem trading stamps, unless
each said trading stamp shall have legibly printed or written upon the
face thereof the redeemable value thereof expressed in cents or fraction
of cents, as the case may be. The redeemable value so printed or
written upon the face of each trading stamp shall not be less than the
actual value of such stamp as determined by the issurer. Such printed

April 10 HOUSE OF REPRESENTATIVES 299

or written value shall be regarded as the stated value of such stamp for
the purposes of this act.

(2) Any issurer or agent for redemption or trading stamps shall
upon production of such trading stamps, redeem the same or cause the
same to be redeemed either in goods or in cash, in good and lawful
money of the United States of America, at the option of the holder
thereof, and any number of such trading stamps shall be so redeemed
at the stated value as printed upon the face thereof, and it shall not be
necessary for the holder thereof to have present for redemption any
stipulated number of such trading stamps before demand for redemp-
tion may be made, provided, however, that the aggregate stated value
of said stamps so offered for redemtpion be not less than ten cents.

(3) All books and other devices furnished for the collection of
trading stamps by holders thereof shall bear the following statement
in bold type thereon. “TRADING STAMPS ARE REDEEMABLE IN
PREMIUMS OR IN CASH AT THE STATED VALUE AT THE
OPTION OF THE HOLDER, BUT ONLY IF OFFERED FOR RE-
DEMPTION WITHIN TWO YEARS OF THE PRINTED DATE OF
ISSUE.”

Section 4. (1) From and after the effective date of this Act,
each trading stamp thereafter issued, given, used, sold or otherwise
disposed of within this state which is not presented for redemption and
redeemed within two years after its printed date of issue shall there-
upon become unclaimed property and all rights of the holder of such
stamp shall revert and belong to the Commonwealth of Kentucky and
the holder of such stamp shall not longer possess or have any rights
_ under or by reason of any such stamp. In order to carry out and en-
force the foregoing reversion and escheat provisions, each trading
stamp issued, given, used, sold or otherwise disposed of after the
effective date of this Act shall have printed legibly on its face the
month and year of issue, provided no stamps shall be sold bearing a
date more than one month in advance from month of sale; that the
excheature provisions of this Act shall apply also to any trading stamp
issued by any merchant.

Each issurer and each agent for redemption of trading stamps
shall make and maintain records of:

(a) The value of trading stamps so issued, given, used, sold, or
otherwise distributed by such person within this state.

(b) The date of their issue.

(c) The value of trading stamps redeemed by him within two
years after their date of issue, so that such records will disclose ac-
curately the total value of trading stamps so issued, given, used, sold
or otherwise distributed within this state which are not presented for
redemption or redeemed within two years after their date of issue.

(2) Any issurer by virtue of doing business in this state authorizes
the Department of Revenue to make or have made an audit of the

300 JOURNAL OF THE April 10

issuer's books and records to determine the amount and value of un-
redeemed stamps that have been escheated to the Commonwealth of
Kentucky under the provisions hereof.

Section 5. (1) Any person who fails to pay taxes after becoming
due or fails for thirty days after the required date to make a report
shall pay a penalty of ten percent on the amount due and shall pay an
additional penalty of five percent of the first of each month so long
as the tax remains due and unpaid, except the total shall not exceed
fifty percent of the taxes due.

(2) Any person, whether as principal, agent, officer or director,
for himself or for another person, who shall violate any of the pro-
visions of any section of this Act, is guilty of a misdemeanor for each
single violation and upon conviction thereof shall be punished by a
fine of not less than one hundred dollars nor more than five hundred
dollars or by imprisonment not exceeding six months, or by both said
fine and imprisonment. Each separate violation shall be a separate
offense and each day of the continuance of such violation shall be
deemed a separate offense.

Section 6. The provisions of this Act are severable. If any sen-
tence, clause, or section or part of this Act, or the application thereof
to any particular state of case is for any reason found to be uncon-
stitutional, illegal, or invalid, such unconstitutionality, illegality, or
invalidity shall not affect or repeal any of the remaining provisions,
sentences, clauses, or sections or parts of this Act, it being the legisla-
tive intent of this body to ordain and enact each provision, paragraph,
sentence and part hereof separately and independently of each other.

Section 7. Whereas, the revenue provided by this Act are vitally
needed for the 1956-1957 fiscal year, an emergency is declared to exist
and this Act shall become effective July 1, 1956.

HB 5: AN ACT relating to annexation of unincorporated territory
by municipalities in Kentucky.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

(1) The General Assembly, recognizing that the general welfare
and prosperity of the Commonwealth of Kentucky is very greatly de-
pendent upon continued industrial development and expansion; and,
further recognizing that reasonable assurance of fair treatment will
greatly increase industrial development and expansion in Kentucky,
it hereby is declared to be the public policy of the Commonwealth of
Kentucky to encourage the location of new industries and the expan-
sion of existing industries in Kentucky by prohibiting unfair and un-
reasonable annexation by municipal corporations of industries now or
hereafter located in unincorporated areas. However, it is not the intent
of the General Assembly to prohibit, restrict or hamper normal expan-

April 10 HOUSE OF REPRESENTATIVES 301

sion of municipal boundaries if such normal development and expan-
sion extends to and embraces such industrial properties.

(2) No unincorporated territory in which is located an industrial
plant or plants shall be annexed by any municipality unless such
territory is embraced within a broad, comprehensive plan of annexa-
tion. The territory to be annexed shall be contiguous to the boundary
line or lines of such municipality, and the territory or area to be
annexed shall be both compact and contiguous. The number of owners
of real estate in the territory proposed to be annexed shall equal or
exceed fifty (50) percent of the average number of persons employed
by industrial plants within such territory during the next preceding
calendar year, the number of such owners of real estate to be deter-
mined by taking the total of such owners from the assessments lists in
the County Tax Commissioner's office as of the close of the next pre-
ceding assessment date.

(3) Nothing herein shall be construed as prohibiting any muni-
cipality from annexing any industrial plant or plants or its properties if
the duly authorized representatives of such industrial plant or plants
consent to or request such action.

(4) Any person or persons within the area proposed to be an-
nexed shall have the right to file a protest and to have the protest
heard and determined as now provided by existing statutes.

(5) All Jaws and parts of laws in conflict herewith, to the extent
of such conflict, hereby are repealed.

WHEREAS, numerous industries are now considering whether to
expand their industrial plants in Kentucky or locate plants elsewhere,
and

WHEREAS, numerous industries are now considering whether to
locate industrial plants in Kentucky or locate them elsewhere, and

WHEREAS, the provisions of this Act may be sufficient induce-
ment and assurance to cause such industries to expand their existing
plants and others to locate industrial plants in Kentucky, an emergency
is hereby declared to exist and this Act shall become effective imme-
diately upon its passage and approval by the Governor.

HB 7: AN ACT appropriating money to the Department of
Revenue.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. In order to administer laws passed during the sessions
of the 1956 General Assembly pertaining to revenue, there is hereby
appropriated from the General Expenditure Fund to the Department
of Revenue, General Operations, the sum of $165,000 for the 1956-57
fiscal year and the sum of $215,000 for the 1957-58 fiscal year.

302 JOURNAL OF THE April 10

Section 2. In order to administer laws passed during the sessions
of the 1956 General Assembly, there is hereby appropriated from the
Road Fund to the Department of Revenue the sum of $73,000 for the
1956-57 fiscal year and the sum of $90,000 for the 1957-58 fiscal year.

HB 9: AN ACT relating to alcoholic beverages prohibition.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Title to contraband included in subsections (8), (4)
and (5) of KRS 244.180 seized in a dry territory shall be vested in the
Alcoholic Beverage Control Board, irrespective of whether such con-
traband was seized by peace officers of the city or county or state
administrators or field representatives of the department.

Section 2. The Alcoholic Beverage Control Board shall cause a
sale of such contraband as is included in Section 1 of this Act to be
made and shall, after deducting the expense of transporting and selling
such contraband, return one-half the proceeds of such sale to the
proper authorities of the city or county in which such seizure was ac-
complished solely by the peace officers of the city or county where
such seizure occurred. The remaining one-half shall be paid to the
State Treasury and shall be credited to the General Fund. Where the
evidence for the seizure of such contraband is obtained by the state
administrators or field representatives of the department, the Alcoholic
Beverage Control Board shall cause a sale of such contraband to be
made and shall pay all the receipts to the State Treasury and be
credited to the General Fund.

Section 3. Whereas, under present statutes state and local gov-
ernments often realize no gain from the sale of alcoholic beverage con-
traband seized in dry territory;

Whereas, the sale of such contraband could provide a source of
much needed additional revenue; and

Whereas, sizable stocks of contraband alcoholic beverages are
now being held by state and local governments, an emergency is de-
clared to exist and this Act shall become effective upon its passage and
approval by the Governor.

Introduction of Bills
HB 22, by Representative Mackey: AN ACT relating to taxation.

HB 22 referred to Rules Committee.

Representative Breathitt, seconded by Representative Lowman,
moved public hearing on all tax measures now before the House of
Representatives. Agreed.

Representative Morgan moved to adjourn until 1:00 P.M., April
Il, 1956. Agreed.

April 11 HOUSE OF REPRESENTATIVES 303

WEDNESDAY, APRIL 11, 1956
FIFTH LEGISLATIVE DAY
The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend E. W. Baxter of the Episcopal Church,
Frankfort.

The roll was called. All present except Anderson, Beshear, Blank-
enship, Bridgers, F lanery, Gay, Hilton, Lambert, Newsom, Nunnelley,
Parrish, John B. Reed, Tinsley, and Wathen, who were granted leaves
of absence on motion of Representative Morgan.

Reading of the Journal for April 10, 1956, dispensed with and
the same approved on motion of Representative Isler.

The Chief Clerk read the Secretary of State’s Certificate of the
amendment to the Governor’s call for this Fourth Extraordinary Ses-
sion.

I, THELMA L. STOVALL, Secretary of State for the Common-
wealth of Kentucky, do certify that the foregoing writing has been
carefully compared by me with the original record thereof, now in my
official custody as Secretary of State and remaining on file in my
office, and found to be a true and correct copy of Proclamation by the
Governor of the Commonwealth of Kentucky amending the proclama-
tion for the Fourth Extraordinary Session of the General Assembly of
the Commonwealth of Kentucky in 1956, now in session.

IN WITNESS WHEREOF, I have hereunto
set my hand and affixed my official seal.

Done at Frankfort this 10th day of April, 1956
(Signed) THELMA L. STOVALL

Secretary of State, Commonwealth of Kentucky

PROCLAMATION BY THE GOVERNOR OF THE
COMMONWEALTH OF KENTUCKY

TO ALL TO WHOM THESE PRESENTS SHALL COME:

WHEREAS, certain other needs for the Commonwealth of Kentucky
have come to the attention of the Governor that have not
heretofore been adequately dealt with by the General
Assembly at its regular or extraordinary sessions; and

WHEREAS, it is desirable to include these needs in the Extraordinary
Session now in session;

NOW, THEREFORE, the proclamation issued by me as Governor of
Kentucky, convening the General Assembly of Ken-
tucky in Extraordinary Session at the seat of Government
at Frankfort, Kentucky, at 2:00 P.M. on Friday, April 6,

304 JOURNAL OF THE April 11

1956, is amended to include the following additional
subjects:
(1) Tax for school purposes.
(2) Legislation relating to free textbooks.
(8) Legislation relating to terms of circuit courts.
You will, therefore, in accordance with this procla-
mation, consider the subjects herein mentioned in addi-
tion to those subjects previously mentioned in my procla-
mation issued on the 6th day of April, 1956, at the Extra-
ordinary Session now in session.
Done at Frankfort, Kentucky, this 10th day of
April in the year of our Lord, one thousand
nine hundred and fifty-six, and in the year of
the Commonwealth, the one hundred and -
sixty-fourth.
(Signed) A. B. CHANDLER, Governor
(SEAL)
(Signed) Thelma L. Stovall
Secretary of State

Representative Tanner moved that his written statement as to
why he would have voted “No” on the Budget Bill had he been present
be recorded. IIness in his immediate family prevented his presence
during the Roll Call on said Bill.

“I move that it be recorded on the Journal that had I been present
during the session on the Budget Bill that I would have voted “No”.
My absence was caused by the illness of three members of my own
immediate family.

My position against an otherwise good Budget is for the following
reasons:

(1) The minimum foundation program is splendid, but the
budget was loaded down with capital-outlay expenses, much as the
new University of Kentucky Medical School; which we are not able
to afford at this time as a poor state of low income.

(2) The Governor of Kentucky failed to include his plans for
raising revenue in with this 48 million dollar increase . . . which con-
stituted a violation of Kentucky laws and which did not carry out the
principle of government of the people, by the people and for the
people.”

(Signed) PATRICK TANNER
Representative, 15th District
City of Owensboro

Representative Tanner's motion was adopted without objection.

Representative Lowman, seconded by Representative Breathitt,
moved that HB 8 be taken from the Rules Committee.

Representative Lowman moved the Previous Question. Agreed.

April 11 HOUSE OF REPRESENTATIVES 305

On roll call, the vote was yeas 47—Barnum, Baumgardner, Blue,
Breathitt, Caudill, Conrad, Cornett, Freeman, Griffin, Grigsby,
Grundy, Hadden, Hahn, Hawkins, Heskamp, Heyburn, Hill, Hislope,
D. W. Howard, Jennings, Lowman, Mackey, Martin, McCallum, Mc-
Fadden, McKinney, Miller, Mullins, Murphy, Nunn, Peace, Pollitte,
Ratcliffe, Ray, R. Reid, Sr., Reynolds, Saylor, Searcy, Sloan, Stith,
Tanner, Thomas, Thompson, L. B. Wells, Williamson, Wilson, Young.
Nays 1—Cottengim.

Motion on HB 8 was rejected.

Senate Message
Senate message announcing passage of SR 4. SR 4 read by Clerk.

Calendar
HIB 4, HB 5, HB 7, and HB 9 taken from the Calendar and read at
length for the second time. Ordered placed in Orders of the Day.

Orders of the Day
HB 1 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time.

Representative Breckinridge, seconded by Representative Tanner,
moved that HB 1 be made a Special Order for Tuesday, April 17,
1956, at 1:00 P.M. Representative Freeman moved a Roll Call on mo-
tion of Representative Breckinridge. Agreed.

Representative Lowman moved the Previous Question. Agreed.

On roll call, the vote was yeas 72—Barnum, Bates, Baumgardner,
Blankenship, Blue, Breathitt, Breckinridge, Buchanan, Burnley, Cau-
dill, Conrad, Cornett, Davidson, Davis, Dunsil, Embry, Everett, Free-
man, Gay, Griffin, Grigsby, Grundy, Hadden, Hahn, Hawkins, Hes-
kamp, Heyburn, Highland, Hilton, Hinkle, Hislope, Holsclaw, C. S.
Howard, D. W. Howard, Jennings, Johnson, Lowman, Mackey, Martin,
McCallum, McFadden, McKinney, Melton, Miller, Moore, Mullins,
Murphy, Nunn, Ockerman, Peace, Pollitte, Ratcliffe, Ray, V. Reed,
H. V. Reid, R. Reid, Sr., Reynolds, Saylor, Searcy, Sloan Stith, Tanner,
Thomas, Tinsley, Walsh, Wathen, A. W. Wells, L. B. Wells, William-
son, Wilson, Wirsch, Young. Nays 12—Casey, Cottengim, Day, Flan-
ery, Gullette, Harris, Hill, Isler, Kubale, Morgan, Thompson, Wein-
traub.

Motion on HB 1 was passed.

Representative Morgan moved that the vote by which the said
motion was passed be reconsidered and said motion be laid on the
table. Agreed.

Introduction of Bills and Resolutions

HB 23, by Representative Morgan: AN ACT concerning escheats.

HB 24, by Representative Morgan: AN ACT relating to circuit
courts.

306 JOURNAL OF THE April 11

HB 25, by Representative Breckinridge: AN ACT relating to the
taxation of alcoholic beverages.

HB 26, by Representative Burnley: AN ACT relating to tax for
school purposes.

HB 27, by Representative Morgan: AN ACT relating to revenue
and taxation.

HB 28, by Representative Reynolds: AN ACT relating to taxes on
wines and malt beverages amending Section 243.720 of the Kentucky
Revised Statutes.

HB 29, by Representatives Martin and Reynolds: AN ACT relating
to alcoholic beverages.

HB 30, by Representatives Holsclaw and Moore: AN ACT relating
to revenue and taxation.

HB 31, by Representatives Johnson and Blankenship: AN ACT
relating to revenue and taxation.

HB 32, by Representative Thomas: AN ACT to license and regu-
late the standing of animals.

HB 33, by Representative Buchanan, AN ACT relating to revenue
and taxation.

HR 4, by Representative Morgan: A JOINT RESOLUTION mak-
ing an appropriation to the Legislative Session Fund and declaring an
emergency.

Representative Morgan moved that the House adjourn until 10:00
A.M., April 12, 1956. Agreed.

April 12 HOUSE OF REPRESENTATIVES 307

THURSDAY, APRIL 12, 1956
SIXTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.
Prayer by Representative Caleb McFadden, Member of the House
of Representatives.

The roll was called. All present except Anderson, Bates, Beshear,
Blue, Bridgers, Bush, Cottengim, Farmer, Grigsby, Gullette, Hawkins
Heyburn, Isler, Lambert, Melton, Moore, Nunnelley, Qualls, Ray-
burn, John B. Reed, Sloan, Tanner, Thomas, and Tinsley, who were
granted leaves of absence on motion of Representative Morgan.

Reading of Journal for April 11, 1956, dispensed with and the same
approved on motion of Representative Burnley.

Recess

Representative Morgan moved the rules be suspended for the
purpose of making a motion. Agreed.

Representative Morgan moved the House do now recess for 15
minutes for a Rules Committee Meeting. Agreed.

At the appointed hour, the Speaker resumed the Chair and called
the House to order.

Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.

Report of Committee
Committee on Rules reported HR 4 and HB 11 with the expression
of opinion that the same should pass. Read at length for the first time
and ordered placed in the Calendar.

HR 4: A JOINT RESOLUTION making an appropriation to the
Legislative Session Fund and declaring an emergency.

WHEREAS, the funds appropriated to the Legislative Session
Fund for the present biennium are almost exhausted, and

WHEREAS, present funds may not be adequate to pay members
and employees of the General Assembly for the duration of the extra-
ordinary sessions of the General Assembly,

NOW, THEREFORE,

Be it resolved by the General Assembly of the Commonwealth
of Kentucky:

Section 1. That there is appropriated to the Legislative Session
Fund out of the General Expenditure Fund in the State Treasury the
sum of one hundred thousand dollars for the 1955-56 fiscal year.

Section 2, Whereas, funds previously appropriated to the Gen-
eral Assembly are insufficient to meet the expenses of the sp bclautaed!
sessions, an emergency is declared to exist, and this Resolution shall
become effective upon its passage and approval by the Governor.

308 JOURNAL OF THE April 12

HB 11: AN ACT relating to revenue and taxation.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. As used in this Act, unless the context requires other-
wise:

(1) “Department” means the Department of Revenue.

(2) “Persons” means any individual, firm, copartnership, joint
venture, association, fraternal organization, corporation, estate, trust,
business trust, receiver, trustee, syndicate, assignee or other corpo-
ration or combination acting as a unit, and the plural as well as the
singular number.

(3) “Sale” means any transfer of title or possession or both, ex-
change, barter, lease or rental, conditional or otherwise, in any manner
or by any means whatsover of tangible personal property for a con-
sideration and includes the fabrication of tangible personal property
for consumers who furnish either directly or indirectly the materials
used in the fabrication work and the furnishing, repairing or serving
for a consideration of any tangible personal property consumed on
the premises of the person furnishing, repairing or serving such
tangible personal property. A. transaction whereby the possession of
the property is transferred, but the seller retains title as security, shall
be deemed a sale by this Act.

(4) “Retail Sale” means a sale to a consumer or to any person for
any purpose other than -the resale in the form of tangible personal
property and shall mean and include any and all such transactions as
the Department upon investigation finds to be in lieu of sales, pro-
vided the sales for resale must be made in strict compliance with rules
and regulations. Any dealer making a sale for resale in violation of
the rules and regulations, shall himself be liable for and pay the tax.

(5) “Storage” means and includes any keeping or retention in
this state, or for any purpose other than sale at retail in the regular
course of business.

(6) “Use” means and includes the exercise of any right or power
over any tangible personal property incident to the ownership thereof,
except that it shall not include the sale at retail of that property in
the regular course of business.

(7) “Sales Price” means the total amount for which tangible
personal property is sold, including any services that are a part of a
sale, valued in money, whether paid in money or otherwise, and in-
cludes any amount for which credit is given to the purchaser by the
seller, without any deductions therefrom on account of the cost of the
property sold, the cost of the material used, labor or service costs, in-
terest charged, losses, or any other expenses whatsover; provided that
cash discounts allowed and taken on sales shall not be included, nor
shall the sale price include the amount charged for labor or services
rendered in installing, applying, remodeling or repairing property sold.

April 12 HOUSE OF REPRESENTATIVES 309

(8) “Gross Sales” means the sum total of all retail sales of tan-
gible personal property as defined herein without any deductions
whatsover of any kind or character except as provided by this Act.

(9) “Cost Price” means the actual cost of articles of tangible
personal property without any deductions therefrom consisting of
materials used, labor or service costs, transportation charges or any
expenses whatsover.

(10) “Lease or Rental” means the leasing or renting of tangible
personal property and the possession or use thereof by the lessee or
rentee for a consideration, without transfer of title of such tangible
personal property.

(11) “Business” means and includes any activity engaged in by
any person, or caused to be engaged in by him, with the object of
gain, benefit, or advantage, either direct or indirect. The term “busi-
ness” shall not be construed in this Act to include occasional and iso-
lated sales or transactions by a person who does not hold himself out
as engaged in business.

(12) “Retailer” means and includes every person engaged in the
business of handling tangible personal property, whether it be for
making sales at retail, or for distribution, or use, or consumption, or
storage of tangible personal property to be used or consumed in this
state.

(13) “Tangible Personal Property” means and includes personal
property, which may be seen, weighed, measured, felt or touched, or is
in any other manner perceptible to the senses. The term “tangible
personal property” shall not include stocks, bonds, notes, insurance or
other obligations or securities.

(14) The term “Use Tax” referred to in this Act includes the
“use”, the consumption, the distribution, and the “storage” as herein
defined.

(15) “Dealer” means every person as used in this Act who sells
at retail or offers for sale at retail, or leases or rents without trans-
ferring or acquiring title thereto, tangible personal property as de-
fined herein; or who manufactures, or produced, or imports, or causes
to be imported, or has in his possession, for sale at retail, or for use, or
consumption, or distribution, or storage to be used or consumed in
this state, tangible personal property as defined herein.

(16) The term “food and food products for human consumption”
shall be given its usual and ordinary meaning, but shall not include
malt or vinous beverages, soft or carbonated drinks, sodas, or beverages
such as are ordinarily sold or dispensed at stores, bars, stands or soda
fountains or in connection therewith, candies or confectioneries,
medicines, tonics, and preparations in liquid, powdered, granular,
tablet, capsule, or pill form sold as dietary supplements; nor does
“food and food products for human consumption” include prepared
meals or foods sold or served on or off the premises by restaurants,

310 JOURNAL OF THE April 12

cafes, cafeterias, hotel dining rooms, drug stores, or other places where
prepared meals or foods are sold or served.

Section 2. (1) There is hereby levield a tax upon the sale, the
retail, the use, the consumption, the distribution and the storage for
use or consumption in this State, of each item or article of tangible
personal property as defined herein. The levy of said tax to be as
follows:

(a) At the rate of three percent of the sales price of each item
or article of tangible personal property when sold at retail in this
State; the tax to be computed on gross sales for the purpose of remitting
the amount of tax due the State and to include each and every retail
sale.

(b) At the rate of three percent of the cost price of each item or
article of tangible personal property when the same is not sold but is
used, consumed, distributed or stored for use or consumption in this
State, provided there shall be no duplication of the tax.

(2) There is hereby levied a tax upon the lease or rental within
this State of each item or article of tangible personal property as
defined herein. The levy of said tax to be as follows:

(a) At the rate of three percent of the gross proceeds derived from
the lease or rental of tangible personal property as defined herein,
where the lease or rental of such property is an established business
or part of an established business.

(b) At the rate of three percent of the monthly lease or rental
price paid by lessee or rentee, or contracted or agreed to be paid by
lessee or rentee to the owner of the tangible personal property.

(3) The tax levied in this Act shall be collected from the dealer
as defined herein; and shall be paid at the time and in the manner
hereinafter provided.

Section 3. (a) The aforesaid tax at the rate of three percent of
the retail sales price, as of the moment of sale, or three percent of the
cost price, as of the moment of purchase, as the case may be, shall be
collectible from all persons as defined herein engaged as dealers, as
hereinafter defined, in the sale at retail, the use, the consumption, the
distribution, and the storage for use or consumption in this State,
of tangible personal property.

(b) On all tangible personal property imported or caused to be
imported from other states or foreign country and used by him, the
dealer, as herein defined, shall pay the tax imposed by this Act on
all articles of tangible personal property so imported and used, the
same as if said articles had been sold at retail for use or consumption
in this State. For the purpose of this Act, the use or consumption, or
distribution, or storage to be used or consumed in this State of tangible
personal property shall each be equivalent to a sale at retail, and the
tax shall thereupon be levied and collected in the manner provided
herein, provided there shall be no duplication of the tax in any event.

April 12 HOUSE OF REPRESENTATIVES 311

Section 4. The tax so levied is and shall be in addition to all
other taxes whether levied in the form of excise, license or privilege
taxes and shall be in addition to all other fees and taxes levied, pro-
vided, however, that the sale of food and food products to be used in
the home are exempt from the tax herein levied.

Section 5. (1) The tax herein levied shall be collected by the
dealer from the purchaser or consumer at the time of making sales in
this State.

(2) Dealers shall, as far as practicable, add the amount of the tax
imposed under this Act, in conformity with the schedule or schedules
to be prescribed by the Department of Revenue pursuant to the au-
thority conferred herein, to the sale price or charge which shall be a
debt from the purchaser or consumer to the dealer until paid, and shall
be recoverable at law in the same manner as other debts. Any dealer
who shall neglect, fail or refuse to collect the tax provided herein shall
be liable for and pay the tax.

(3) Where the tax collected for any period is in excess of three
percent, the total tax collected over and above the three percent shall
be paid over to the Department of Revenue less the compensation to
be allowed the dealer as hereinafter set forth. This provision shall be
construed with other provisions of this Act and given effect as to result
in the payment to the Department of Revenue of the total tax collected
including that in excess of three percent.

(4) Any dealer who shall fail, neglect or refuse to collect the tax
as provided in this Act, either by himself or through his agents or
employes, shall in addition to the penalty or being liable for and paying
the tax himself, be guilty of a misdemeanor and upon conviction shall
be punished by fine of not less than twenty-five dollars nor more than
two hundred dollars or imprisoned for not more than three months,
or both, in the discretion of the court.

(5) A dealer shall not advertise or inform the public in any
manner directly or indirectly that he will absorb all or part of the tax
or that he will relieve the purchaser from the payment of all or ay
part of the tax levied herein. A person who violates this provision shall
be guilty of a misdemeanor and upon conviction shall be punished
by a fine of not less than twenty-five dollars nor more than two hun-
dred dollars or imprisonment for a period not exceeding three months,
or both, in the discretion of the court.

Section 6. Where used articles are taken in trade, or a series of
trades as a credit or part payment on the sale of new and used articles,
the tax levied by this Act shall be paid on the net difference of the
new or used article less the credit for the used article. ,

Section 7. In event purchases are returned to the dealer by the
purchaser or consumer after the tax imposed by this Act has been
collected or charged to the account of the consumer or user, the dealer
shall be entitled to credit or to reimbursement of the amount of tax so

312 JOURNAL OF THE April 12

collected or charged by him in the manner prescribed by the Depart-
ment of Revenue and in case the tax has not been remitted by the
dealer to the Department of Revenue, the dealer may deduct the
amount in submitting his return upon receipt of a signed statement of
the dealer as to the gross amount of such refunds during the period
covered by the said signed statement, which period shall not be longer
than one fonder and eighty days.

Section 8. If any dealer liable for any tax, interest or penalty
levied hereunder shall sell out his business or stock of goods, or shall
quit the business, he shall make a final return and payment within
fifteen days after the date of the selling or quitting the business. His
successor, successors, or assigns, if any, shall withhold sufficient of the
purchase money to cover the amount of such taxes, interest and
penalties due and unpaid until such former owner shall produce a
receipt from the Department of Revenue showing that they have been
paid, or a certificate stating that no taxes, interest or penalties are
due. If the purchasers of a business or stock of goods shall fail to
withhold the purchase money as above provided, he shall be personally
liable for the payment of the taxes, interest, and penalties accruing and
unpaid on account of the operation of the business by any former
owner, owners, or assigns.

Section 9. (1) Every person desiring to engage in or conduct
business as a dealer in this State shall file with the Department of
Revenue an application for a certificate of registration for each place
of business. Each application for certificate of registration shall be
made upon a form prescribed by the Department of Revenue and
contain such information as the Department of Revenue deems neces-
sary for the purpose of the enforcement of the Act.

(2) At the time of making an application, the applicant shall pay
the Department of Revenue a fee of one dollar for each certificate of
registration.

(3) When the required application has been approved, the De-
partment of Revenue shall grant and issue to each applicant a separate
certificate of registration for each place of business within the State.
A certificate of registration is not assignable and is valid only for the
person in whose name it is issued and for the transaction of business
at the place designated therein. It shall at all times be conspicuously
displayed at the place for which issued.

Section 10. (1) In order to prevent the illegal importation of
tangible personal property which is subject to tax in this State and to
strengthen and make more effective the procedure and method of
enforcing payment of the tax imposed by this Act, the Department of
Revenue is hereby authorized and empowered to put into operation a
system of permits whereby any person or dealer as defined in this
Act may import tangible personal property by truck, automobile or
other means of transportation other than a common carrier. Such sys-

April 12 HOUSE OF REPRESENTATIVES 313

tem of permits shall require a person or dealer who desires to import
tangible personal property into the State which property is subject to
tax imposed by this Act to apply to the Department of Revenue for a
permit stating the kind of vehicle to be used, the name of the driver,
the license number of the vehicle, the type of tangible personal prop-
erty to be imported and such other information as the Department of
Revenue may deem necessary to prevent the illegal transportation of
taxable tangible personal property into the State. Such permits shall
be free of cost and may be obtained from the Department of Revenue
and shall expire on the last day of each calendar year. Permits may
be renewed by application.

(2) Import permits granted under this section shall be suspended
or revoked in the same manner as is prescribed in Section 11 of this
Act.

Section 11. The Department of Revenue shall have the power
to cite holders of registration certificates for violations of this Act to
appear before the Kentucky Tax Commission to show cause why their
registration certificate should not be revoked. Upon cause the Ken-
tucky Tax Commission may suspend or revoke the registration cer-
tificate of any dealer. At the end of the suspension or revocation period,
as determined by the Commission, a dealer whose certificate of regis-
tration has been previously suspended or revoked shall pay the De-
partment of Revenue a fee of one dollar and file a new application for
the renewal or issuance of a certificate of registration. The dealer so
cited shall be given ten days notice in writing specifying the time and
place of hearing. The notice may be served personally or by registered
mail directed to the last known address of the person. Any person who
engages in business as a dealer in this State without a certificate of
registration after a certificate of registration has been suspended or
revoked and each officer of any corporation which so engages in
business shall be guilty of a misdemeanor and punishable as provided
by law.

Section 12. (1) For the purpose of the enforcement of the col-
“lection of the tax levied by this Act, the Department of Revenue or its
agents are hereby authorized and empowered tg examine the books,
records, and other documents of all transportation companies, agencies
or firms in order to determine what dealers as provided in This Act
are importing or consuming the articles of tangible personal property
which are liable for said tax.

(2) Each dealer as defined in this Act shall secure, maintain and
keep for a period of at least two years a complete record of tangible
personal property received, used, sold at retail, distributed or stored,
leased or rented within this State by said dealer together with invoices,
bills of lading and other pertinent records and papers as may be re-
quired by the Department of Revenue for the reasonable administra-
tion of this Act and all such records shal] be open for inspection to the

314 JOURNAL OF THE April 12

Department of Revenue. Any dealer subject to the conditions of this
Act who shall violate this provision shall be guilty of a misdemeanor
and shall be punished by a fine of not more than two hundred dollars
or imprisonment for not more than three months, or both in discretion
of the court.

Section 13. (1) The taxes imposed by this Act are due and pay-
able to the Department of Revenue quarterly on or before the thirtieth
day next succeeding each quarterly period. The words “quarterly
period” shall mean a period of three calendar months commencing on
the first day of January, April, July or October of each year or in case
any seller shall commence business on a day other than the first day of
January, April, July or October, a period beginning on the date of
commencement of business and ending on December 31, March 31,
June 80 or September 30. The first quarterly period to be in force and
effect under this chapter shall be that which commences on the first
day of October, 1956.

(2) If any dealer subject to make and file a return required by any
provision of this Act fails to render such return within the time required
or renders a return which is false or fraudulent in that it contains
statements which differ from the true gross sales, purchases, leases or
rentals taxable under this Act or otherwise fails to comply with the
provisions of this Act for the taxable period for which said return is
made, the Department of Revenue shall give such dealer ten days
notice in writing requiring such dealer to appear before the Depart-
ment of Revenue or its agents with such books, records, and papers
as the Department may require relating to the business of such dealer
for such taxable period; and said Department of Revenue may require
such dealer or the agents and employes of such dealer to give testimony
or to answer interrogatories under oath administered by the Depart-
ment of Revenue or its agents respecting the sale at retail, the use,
consumption, or distribution, or storage for use or consumption in this
State, or lease or rental of tangible personal poe subject to: tax
or the failure to make report thereof as provided in this Act.

(3) If any dealer fails to make any such return or refuses to
permit an examination of his, the dealer’s books, records or papers, or
to appear and answer questions within the scope of such investigation
relating to the sale, use, consumption, distribution, storage, lease, or
rental of tangible personal property, the Department of Revenue is
hereby authorized to make an assessment based upon such information
as may be available to them.

(4) In the case of the lease or rental of tangible personal prop-
erty, if the consideration given or reported by the dealer does not, in
the judgment of the Department of Revenue, represent the true or
actual consideration, then the Department of Revenue is authorized
to fix the same and collect the tax thereon in the same manner as
above provided, with interest plus penalties, if such have accrued. Any
such assessment shall be deemed prima facie correct.

April 12 HOUSE OF REPRESENTATIVES 315

(5) At the time of transmitting the return required hereunder to
the Department of Revenue the dealer shall remit to the Department
therewith the amount of tax due under the applicable provisions of this
Act and failure to so remit such tax shall cause said tax to become
delinquent.

(6) Any dealer subject to the provisions of this Act failing or
refusing to furnish any return herein required to be made or failing or
refusing to furnish a supplemental return of other data required by the
Department of Revenue, or who shall violate any other provisions of
this Act, punishment for which is not otherwise herein provided shall
be guilty of a misdemeanor and upon conviction thereof shall be fined
in the sum of not less than twenty-five dollars nor more than two
hundred dollars or imprisoned for a period of not less than thirty days
or more than ninety days, or both fine and imprisonment, at the dis-
cretion of the court. For second or subsequent offenses of any pro-
visions of this Act, the penalty shall be double.

(7) Any dealer required to make, render, sign, or verify any re-
turn as aforesaid who makes a false or fraudulent return with intent to
evade the tax hereby levied shall be guilty of a misdemeanor and
upon conviction shall be fined not less than one hundred dollars nor
more than one thousand dollars or be imprisoned not less than thirty
days nor more than ninety days, or shall be punished by both fine and
imprisonment, in the discretion of the court.

Section 14. (1) When any dealer shall fail to make any return
and pay the full amount of the tax required by this Act, there shall be
imposed, in addition to other penalties provided herein, a specific
penalty to be added to the tax in the amount of five percent of the
tax due if the report and remittance is not more than one calendar
month late, with an additional five percent for each additional calen-
dar month or fraction thereof during which the failure continues, not
to exceed twenty-five percent in the aggregate. In the case of a false or
fraudulent return where willful intent exists to defraud the State of
any tax due under this Act, a specific penalty of fifty percent of the
tax due shall be assessed.

(2) When any dealer fails to remit the tax or any portion thereof
on or before the day when such tax shall be required by law to be
paid, there shall be added to the amount due, interest at the rate of
six percent per annum from the due date until paid.

(3) In the event any dealer fails to make a report and pay the
tax as provided by this Act or in case any dealer makes intentionally
an incorrect report or a report that is false or fraudulent, it shall be
the duty of the Department of Revenue to make an estimate for the
taxable period of retail sales of such dealer or of the gross proceeds
from rentals or leases of tangible personal property by the dealer and
an estimate of the cost price on all articles of tangible personal prop-
erty imported by the dealer for use or consumption or distribution or
storage to be used or consumed in this State and assess and collect

316 JOURNAL OF THE April 12

the tax and interest plus penalty if such have accrued on a basis of
such assessment which shall be considered prima facie correct and
the burden to show the contrary shall rest upon the dealer.

(4) In the event the dealer has imported tangible personal prop-
erty and he fails to produce an invoice showing the cost price of the
articles as defined in this Act which are subject to tax or the invoice
does not reflect the true or actual cost price as defined herein then the
Department of Revenue shall ascertain in the best manner feasible .
the true cost price and assess and collect the tax with interest plus
penalties if such have accrued on the true cost price. The assessment
so made shall be considered prima facie correct and the duty shall be
on the dealer to show the contrary.

Section 15. All taxes, interests and penalties imposed under this
Act shall be paid to the Department. of Revenue in the form of a
remittance required by the Department.

Section 16. For the purpose of compensating the dealer in ac-
counting for and remitting the tax levied by this Act, each dealer shall
be allowed one percent of the amount of tax due and accounted for
and remitted to the Department of Revenue in the form of a deduction
in submitting his report and paying the amount due by him; provided
the amount due on the report was not delinquent at the time of
payment.

Section 17, The State shall have a lien on all of the tangible
personal property of a dealer for taxes due and owing under this Act.
The lien may be enforced as other liens on similar property are en-
forced, but such lien shall not affect any personal property passing to
a bona fide purchaser for value.

Section 18. All monies collected and payable to the Department
of Revenue under the provisions of this Act shall be turned over to the
State Treasurer to be credited to the general fund.

Section 19. The Department of Revenue shall have the power
to make and publish reasonable rules and regulations not inconsistent
with this Act or the other laws, or the Constitution of this State or the
United States, for the enforcement of the provisions of this Act and
the collection of revenues hereunder.

Section 20. The Department is authorized to make and publish
rules and regulations not inconsistent with this Act as the Department
may deem necessary in enforcing its provisions in order that there shall
not be collected on the average more than the rate levied herein.
The Department of Revenue is authorized to and shall provide by rules
and regulations a method for accomplishing this end and shall prepare
schedules or instructions to dealers by setting out to them suitable
brackets of prices for applying the tax or any other method that may be
necessary for the purpose of the enforcement of this Act and the col-
lection of the tax imposed thereby.

April 12 HOUSE OF REPRESENTATIVES 317

Section 21. (1) The tax imposed in Section 2 of this Act is in
lieu of that provided in KRS 138.460; but, although that tax is hereby
repealed, the Department of Revenue may by regulation continue to
collect the tax on sales at retail and on storage, use, or other consump-
tion imposed in Section 2 and 5 of this Act under the provisions of
KRS 138.450 to KRS 138.470 or, at its option, to employ the administra-
tive provisions of this Act incident to the administration of all the taxes
imposed by this Act in respect of motor vehicle sales.

Section 22. Section 141.010 of the Kentucky Revised Statutes is
amended to read as follows:

As used in this Chapter unless the context requires otherwise:

(1) “Commissioner” means the Commissioner of Revenue;

(2) “Department” means the Department of Revenue;

(3) “Internal Revenue Code” means the Internal Revenue Code
in effect on January 1, 1954;

(4) “Dependent” means those persons defined as dependents
under Section 25 (b) (8) of the Internal Revenue Code;

(5) “Fiduciary” means a guardian, trustee, executor, adminis-
trator, receiver, conservator, or any person acting in any fiduciary
capacity for any person, estate or trust;

(6) “Fiscal year” means an accounting period of twelve months
ending on the last day of any month other than December;

(7) “Individual” means a natural person;

(8) “Federal income tax” means income tax paid or accrued to
the United States Government on income subject to assessment and
taxation under the provisions of this Chapter;

(9) “Net income,” in the case of taxpayers other than corpora-
tions, means the same as net income defined under Section 21 of the
Internal Revenue Code adjusted as follows:

(a) Exclude income that is exempt from state taxation by the
Constitution and statutory laws of the United States;

(b) Exclude dividend income received during the taxable year
upon stock of banks and trust companies organized under the laws
of this state;

(d) Ignore the “net operating loss deduction;”

(e) Include interest income derived from obligations of sister
states and political subdivisions thereof;

(f) Include refunds of Federal income tax;

Provided the standard deduction set forth in Section 23 (aa) (1) of the
Internal Revenue Code shall not be considered in determining net in-
come. If the taxpayer elects to deduct the standard deduction set forth
in KRS 141.081, the “net income” means adjusted gross income less
the standard deduction.

(10) “Net income,” in the case of corporations, means the same
as net income defined under Section 21 of the Internal Revenue Code
adjusted as follows:

318 JOURNAL OF THE Apri] 12

(a) Exclude income that is exempt from state taxation by the
Constitution and statutory laws of the United States;

(b) Exclude dividend income received during the taxable year
upon stock of banks and trust companies organized under the laws of
this state;

(d) Include interest income derived from obligations of sister
states and political subdivisions thereof,

(e) Ignore state taxes measured by net income;

(f) Ignore the “net operating loss deduction;”

(11) “Taxable net income,” in the case of corporations, means
“net income” derived from business done, properly located, activities
or sources in this state less “Federal income tax;”

(12) “Adjusted gross income” means the same as adjusted gross
income defined in Section 22 (n) of the Internal Revenue Code less
“Federal Income Tax” and the first three thousand dollars of income;

(13) “Person” means and includes an individual, a fiduciary, a
partnership, an employer, an employe and a corporation;

(14) “Taxable year” means the calendar year or fiscal year ending
during such calendar year, upon the basis of which net income is com-
puted and in the case of a return made for a fractional part of a year
under the provisions of this chapter or under regulations prescribed
by the commissioner, “taxable year” means the period for which such
return is made;

(15) “Net operating loss deduction” means the deduction allowed
under Section 23 (s) of the Internal Revenue Code;

(16) “Resident” means any individual domiciled within this state,

(17) “Nonresident” means any individual not a resident of this
state;

(18) “Employer” means “employer” as defined in Section 1621
(d) of the Internal Revenue Code;

(19) “Employe” means “employe” as defined in Section 1621 (c)
of the Internal Revenue Code;

(20) “Number of withholding exemptions claimed” means the
number of withholding exemptions claimed in a withholding exemp-
tion certificate in effect under KRS 141.325, except that if no such
certificate is in effect, the number of withholding exemptions claimed
shall be considered to be zero;

(21) “Wages” means “wages” as defined in Section 1621 (a) of
the Internal Revenue Code;

(22) “Payroll period” means a period for which a payment of
wages is ordinarily made to the employe by his employer, and the
term “miscellaneous payroll period” means a payroll period other than
a daily, weekly, biweekly, semimonthly, quarterly, semiannual, or an-
nual payroll period;

April 12 HOUSE OF REPRESENTATIVES 319

(23) “Head of a household” means “head of a household” as de-
fined in Section 12 (c) (8) of the Internal Revenue Code.

(24) “Corporations” includes associations and joint stock com-
panies;

(25) “Gross income” means “gross income” as defined in Section
22 of the Internal Revenue Code.

Section 23. Whereas, it is deemed necessary that additional
revenues be obtained to meet the requirements of the budget for the
biennium 1956-57 and 1957-58 an emergency is declared to exist and
this Act shall take effect upon its passage and approval by the Gov-
ernor.

Representative Morgan moved to adjourn until 10:00 A.M., April
18, 1956. Agreed.

320 JOURNAL OF THE April 18

FRIDAY, APRIL 13, 1956
SEVENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend H. Glenn Stephens, South Frankfort Pres-
byterian Church, Frankfort.

The roll was called. All present except Anderson, Barnum, Be-
shear, Blankenship, Buchanan, Casey, Conrad, Cottengim, Davidson,
Day, Dunsil, Everett, Flanery, Gay, Greene, Grigsby, Harris, Heyburn,
Clyde S. Howard, Durham W. Howard, Isler, Kubale, Lambert,
Martin, McFadden, Melton, Newsom, Nunnelley, Peace, Pollitte,
Qualls, Rayburn, John B. Reed, Vernon Reed, Reynolds, Saylor, Sloan
Stith, Thomas, and Weintraub, who were granted leaves of absence on
motion of Representative Morgan.

Reading of the Journal for April 12, 1956, dispensed with and the
same approved on motion of Representative Burnley.

Calendar

HB 11 and HR 4 were taken from the Calendar and read at length
for the second time. Ordered placed in Orders of the Day.

Introduction of Bills and Resolutions

HB 34, by Representative Davis: AN ACT relating to revenue
and taxation.

HB 35, by Representatives Lowman, Tanner, Breathitt, William-
son, and Saylor: AN ACT relating to pari-mutuel and other systems of
betting and the taxation thereof, and the appropriation of certain
revenue therefrom.

HIB 36, by Representative Caudill: AN ACT relating to revenue.

HB 87, by Representative Caudill: AN ACT relating to the leasing
of sand and gravel rights in the Ohio River bed.

HB 38, by Representative Tinsley: AN ACT relating to the con-
struction of bridges over boundary line streams between this state and
another and the reciprocal exemption thereof from taxes.

HR 5, by Representative Grundy: A CONCURRENT RESOLU-
TION honoring the City of Campbellsville for the outstanding achieve-
ment in community development.

HR 6, by Representative Wilson: A CONCURRENT RESOLU-
TION commending the City of Glasgow for its achievement in com-
munity development.

HR 7, by Representative Isler: A CONCURRENT RESOLUTION
urging the Congress to enact legislation reducing the Federal taxation
on income.

HR 8, by Representative Isler: A HOUSE RESOLUTION urging
the Congress of the U. S. to enact legislation designed to secure the
return to the respective states of two dollars of each ten and one-half
dollars Federal excise tax collected on whiskey.

April 13 HOUSE OF REPRESENTATIVES SYA

HR 9, by Representative Hislope and Caudill: A JOINT RESOLU-
TION proposing submission of alternative methods of raising revenues,
required by the biennium budget for 1956-57, 1957-58, to take the
sense of the people, by general referendum.

HR 7, HR 8, and HR 9 referred to Rules Committee.

Representative Wilson moved the rules be suspended to make a
motion. Agreed.

Representative Wilson moved the adoption of HR 6. Adopted.

HR 6: A CONCURRENT RESOLUTION commending the City of
Glasgow for its achievement in community development.

WHEREAS, the City of Glasgow has just been awarded one of the
two highest honors in the Kentucky Chamber of Commerce’s 1955
Community Development Contest, and

WHEREAS, Glasgow is promoting industrial development
through the Glasgow Development Corporation, which has made
available, at reasonable prices, industrial sites with water, electricity
and gas, and

WHEREAS, the Glasgow community has a golf course, swimming
pool, three parks, a supervised recreation program, a 124-bed com-
munity hospital, a private hospital, and a clinic, and

WHEREAS, private industry in the City of Glasgow is going
through a period of remodeling, expansion and improvement, and

WHEREAS, all of these community development achievements
contribute to the increased income, the social welfare, and the personal
development of the citizens of the City of Glasgow and the Common-
wealth of Kentucky as a whole,

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky, the Senate concurring therein:

Section 1. That the General Assembly of the Commonwealth of
Kentucky does hereby express its commendation and congratulations
to the City of Glasgow upon its achievement in winning the highest
Community Development Contest award granted by the Kentucky
Chamber of Commerce for 1955.

Section 2. That the Clerk of the House of Representatives cause
copies of this resolution, properly attested under the Seal of the
Commonwealth of Kentucky, to be sent to the Honorable L. B. Nunn,
County Judge of Barren County, and to the Honorable J. R. Ritchey,
Chairman of the Glasgow Chamber of Commerce Development Com-
mittee, and to the Honorable W. E. Walbert, Mayor of the City of
Glasgow.

322 JOURNAL OF THE April 18

Representative Grundy moved the rules be suspended to make a
motion. Agreed.

Representative Grundy moved the adoption of HR 5. Adopted.

HR 5: A CONCURRENT RESOLUTION honoring the City of
Campbellsville for its outstanding achievement in community develop-
ment.

WHEREAS, the City of Campbellsville has just been awarded one
of the two highest honors in the Kentucky Chamber of Commerce’s
1955 Community Development Contest, and

WHEREAS, the City of Campbellsville has shown, during the past
year, phenomenal industrial, economic, and cultural growth for a city
of approximately 3500 population, and

WHEREAS, the physical plant of Taylor County High School has
been expanded, and a municipal swimming pool has been constructed,
and

WHEREAS, the Taylor Manufacturing Company is building an
addition which will increase employment by that firm from 1100 to
1400, and

WHEREAS, a new Catholic school and an addition to the Baptist
church have been completed, and

WHEREAS, 132 new homes were built during the past year, and

‘WHEREAS, Campbellsville College Industries has been estab-
lished to provide part-time employment for 80 students in woodworking
and metal working shops, and

WHEREAS, all of these community development achievements in-
crease the income of the citizens of Campbellsville and contribute to
the social welfare and personal development of the population of the
City of Campbellsville, as well as the Commonwealth of Kentucky
as a whole.

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky, the Senate concurring therein:

Section 1. That the General Assembly of the Commonwealth of
Kentucky does hereby express its commendation and congratulations
to the City of Campbellsville upon its achievement in winning the
highest Community Development Contest award granted by the Ken-
tucky Chamber of Commerce for 1955.

Section 2. That the Clerk of the House of Representatives cause
copies of this resolution, properly attested under the Seal of the Com-
monwealth of Kentucky, to be sent to the Honorable H. T. Parrot,

April 13 HOUSE OF REPRESENTATIVES 323

President of the Campbellsville Chamber of Commerce, and to the
Honorable C. B. Heistand, Mayor of the City of Campbellsville, and to
the Honorable Ira Wise, County Judge of Taylor County.

HR 10, by Representative Breckinridge: A CONCURRENT RES-
OLUTION requesting the Governor to declare Henry Clay’s birthday
as a holiday.

HR 10 laid on the Clerk’s Desk.

Representative Morgan moved that the House adjourn until 8:00
P.M., April 16, 1956. Agreed.

324 JOURNAL OF THE April 16

MONDAY, APRIL 16, 1956
NINTH LEGISLATIVE DAY
The House was called to order by Speaker Fitzpatrick.

Prayer by Representative Caleb McFadden, Member of the House
of Representatives.

The roll was called. All present except Highland, Newsom, Nun-
nelley, Rayburn, John B. Reed, and Mrs. Wilson, who were granted
leaves of absence on motion of Representative Morgan.

Reading of the Journal for April 13, 1956, dispensed with and the
same approved on motion of Representative Isler.

Senate Message

Senate message announcing passage of SR 8 and SB 3. Ordered
that said resolution and bill be referred.

The Clerk read the following communication from the Governor:
Commonwealth of Kentucky, Executive Chamber, Frankfort
April 16, 1956

Hon. Thomas Fitzpatrick, Speaker
House of Representatives
Frankfort, Kentucky

My Dear Speaker:

I have a message which I would like to deliver to a joint session
of the General Assembly in person at your earliest convenience.

If possible, I would like to come tonight at 8:15.
Cordially,

(Signed) A. B. CHANDLER, Governor

Appointment of Committee
The Speaker appointed the following committee pursuant to
Governor’s communication: Representatives Pollitte, Howard V. Reid,
Day, Hill and Williamson.

Joint Session
The Committee appointed to wait upon the Governor reported
that the Governor was ready to address a Joint Session of the General
Assembly.

The Senate entered upon the floor of the House and the Honorable
Harry Lee Waterfield, Lieutenant-Governor and President of the Sen-
ate, assumed the Chair and called the Joint Session to order.

Prayer by the Reverend John C. Chenault, First Christian Church,
Frankfort.

April 16 HOUSE OF REPRESENTATIVES 325

Representative Morgan moved that the Senate and House do now
go into Joint Session to hear a message from the Governor. Agreed.

The Committee appointed to wait upon the Governor appeared
with His Excellency, Albert B. Chandler, Governor of the Common-
wealth of Kentucky, who took his place at the Clerk’s desk.

The Governor addressed the General Assembly, as follows:

SPEECH MADE BY GOVERNOR A. B. CHANDLER TO THE
FOURTH EXTRAORDINARY SESSION OF THE GENERAL
ASSEMBLY, MONDAY NIGHT, APRIL 16, 1956

Mr. President, Mr. Speaker and Ladies and Gentlemen of the
Joint Session of the General Assembly:

I have not anticipated this appearance, and so tonight I have no
prepared speech. I am very grateful to you for giving me an oppor-
tunity to speak again to the Fourth Extraordinary Session of the Gen-
eral Assembly. I have an important message to give to you in addition
to some information that I would like to give you with respect to the
tax session. I think time will prove and, of course, all of us must wait
the passage of time in order to change the course of human events.
We are so close to it now that I’m afraid that it isn’t the proper time
to change, but I think that time will show that perhaps this session
of the Legislature established the ground work, and laid a firm foun-
dation for the greatest period of progress that our people have ever
enjoyed. Notwithstanding the fact that we have had some disagree-
ments, the things that we are all for are so much more important
than the things that divide us that we ought not to dwell on the
differences of opinion and on minor matters at great length. I am
of the opinion now that in the shortest period of time perhaps ever
the total contribution of the men and women to the welfare of our
people in this session outstrips all others in the history of the Com-
monwealth, and, Senators, that is the way it ought to be because if we
do not learn from experience and if we do not learn from the mistakes
of our predecessors, we are not worthy to accept the responsibilities
of an hour such as this. After the General Session, which people tell
me made an outstanding record in the General Session, every day
somebody calls to tell me of some beneficial law you have passed on
your own in the General Session that has made a magnificent contribu-
tion to our people,

The Superintendent of Public Instruction has told me that never
in the history of aes in his opinion did the General Session pass
so many important bills for the benefit of education than the General
Session of 1956, In the Reorganization Session we tried to pattern the
reorganization after the session of 1986 under which we have been
living for these twenty years with some minor changes. Mr. Floor
Leader, at the time that bill was passed it was widely copied in the
United States, and the men responsible for its preparation, and I

326 JOURNAL OF THE April 16

take no great credit for myself, but I certainly invisioned and expressed
the wish to the Legislature of 1936 that we reorganize the government
from top to bottom, make the Governor in fact — — — I recall very
well when Governor Lafoon said that as Governor he had very little
final power and final authority, and people held him responsible for
a great many things for which it was absolutely impossible for him to
assume the responsibility. I ask those of you who are younger and who
have grown up since 1936 to ask Stanley Blake and Dr. Shields and
the old timers who were here then and who are here now, and my
beloved friend, Fred Beshear, I’m glad to see you partner, I’m always
glad to see you, God bless you. They’re proud to have been a part of a
session that reorganized the government from top to bottom so that
we could make the state live within its income, and pay its debts and
operate an orderly government for the benefit of all its people. I want
to disavow in the presence of all of you any wish on this earth now
for future office or future preferment, Doc, on the part of my people
or any future thing, but I think no man could be elected Governor
twice of so great a people and not ask every day Almighty God to
show him the way to do what in the long run of the years what will
best prosper our people. That I do. I have tried to tell you over and
over again that the things that we do are not final. They may even
last for four years and then not be final. Somebody can come along
and change them if they are not right. I am very anxious to change
things that aren’t right right away if we conclude that we have made
a mistake. I am not at all ashamed to back up and say that we have
made mistakes and that we ought to change it and go another way.
I owe too high an obligation to all of our people.

I have made trouble for some of you, not intentionally. I have
made trouble for you. Last year during the campaign I promised the
people of Kentucky, and the people especially with whom I live and
the people with whom I have lived longest and perhaps who love me
best, the people in the vicinity of Versailles and Lexington. I'm not
forgetting the scenes of my childhood in Henderson County, and they
too when the opportunity came on every occasion, Fred, have gone
and helped me in large numbers. And they may do that for you, Billy
Boy, once but to do it for more than a quarter of a century fills your
cup to overflowing. I may have fooled them. I doubt that you can
fool them for twenty-five years. They sort of get on to you in a quarter
of a century. But I promised the people in my country, among other
things, that I would undertake to have you undo something that the
Legislature in 1954 had done to my people. I'd like to give you a little
history. More than twenty years ago a group of people, a hundred in
number, organized at Lexington a non-profit race course. I was a
member of the State Senate the last time the people in Kentucky,
after years and i of strife and fighting, undertook to pass a law
making it unlawful to have pari-mutuel betting in Kentucky. Of course,
if they didn’t have it, chances are the race courses would not keep

April 16 HOUSE OF REPRESENTATIVES 327

open. That’s no great importance or concern of mine. It’s of consider-
able concern to the stockholder of Churchill Downs and the people
who engage in the thoroughbred industry. It’s of lesser concern to the
people who organized this little non-profit race track at Lexington.
When they organized that, there were one hundred families invited
to put up their money and join. There never will be any more and
there probably will not be less, but you couldn’t sell a share of stock
in it. Nobody would buy it because it wasn’t worth anything. You're
not going to get any profit. It’s non-profit. When that little race track
was organized, 90% of the yearling race horses were being sold in
New York. After it was organized, and since it has been organized,
Paul, 90% are being sold at Lexington, Kentucky. It’s quite an industry.
Millions of dollars have gone into Central Kentucky, and coming into
Central Kentucky, it’s scattered abroad into all the Commonwealth.
I dare say that if it were in Glasgow, or Hopkinsville, or Whitesburg,
or Ashland, that you would dare to do anything to weaken its existence
or destroy it. Hundreds and maybe thousands of people make their
living fallowine the thoroughbred horses and working in the stables.
Many people buy their hay and grain and oats from the farmers in
the Bluegrass country and wherever they can. It’s not like Churchill
Downs; they have stopovers. They make money. They distribute divi-
dends. Not so with the little track at Lexington. Floyd Bush told me
today and Floyd Bush will tell you, that thousands of dollars have
been given to little schools that otherwise couldn’t have kept their
doors open. There are many little schools that I have tried to get them
to give money to that you can’t appropriate money to, and if you can’t
appropriate the money, I can’t help them. Small colleges in Kentucky
have been given and almost without exception have taken the money
from the Keeneland Foundation. I don’t know that there is any ex-
ception because the Kentucky Independent College Foundation gets
its money from Keeneland Foundation and others, and they have
taken the money, and I assume that it has been helpful. But last year
in public I said that I thought that it was a bad thing. I thought that
it was done in haste. I thought it was done just to sort of be mean to
a group of people. I thought so. Maybe not. But anyway, I asked you
this year to put it back and you did it. I fear that some of you did it
because I asked you to and really didn’t want to do it. I don't feel
good about that. I feel that you have gotten mixed up on the thing.
I think if you want to stop race track gambling, I'd be honest about it.
I'd put in a bill and say after a certain date there won't be any more
race track gambling and the state will not be a party to race track
gambling. The power to tax, of course, is the power to destroy. Billy
Boy, you remember when it was a common law when they sentenced
a fellow to die? They didn’t say you are sentenced to death. They
sentenced him to bear weights on his chest as heavy as he could bear
and heavier and, of course, when the weights got too heavy, he’d dis-

appear.

328 JOURNAL OF THE April 16

I have made a promise which I always want to keep and mean
to keep. I have been just as frank with you fellows on every public
question, and if you don't think so, there is no time when you can
ask me that you can’t get my views and they'll be my views and as
honest as I can express them on any public question that is involved
here. And I have not withheld from you any information at any time
that I have had that you wanted that would help us to do this job.
This morning I got an unsolicited letter which I must read to you. I
must share this information with you. You are entitled to have it. It will
gratify those people who are in opposition to this little race course over
there. It may relieve some of you who, because I asked you to, voted
to right what I thought was wrong, and that placed me in position,
if you follow their suggestion, that I’m not going to continue to fight
because I promised it and everybody heard me, and I may say that
there was a sharp issue because my opponent said he wouldn't do it.
He said that he would keep it on. I think probably he would have
had an easier time than I have. I probably took the hard way, but I
repeat that if it had been in Whitesburg, or Hopkinsville, or Glasgow—
I have tried and I want to continue to try if I may to keep our people
from fighting each other. Our motto is “United we stand, divided we
fall”, and if we live under the second half of the motto, we are not
going to make much headway.

We had a great fight brewing over the organization of the medical
school. It came, all of you know where it came from. It came from
Louisville. I don’t want the people in Louisville to fight over something
for Lexington, or Glasgow, or Madisonville, or Hopkinsville. There
are enough good things that we can distribute around to among people
without fighting over something. You're never going to have the same
thing. I wouldn't do anything in this world to hurt or injure the Louis-
ville Medical School, and nobody knows that better than the President
of the University of Louisville. On the contrary I have not hurt it.
I have asked you and you have helped it, and it is going to be much
better off in the future than it has been in the past. This letter is dated
April 14, 1956:

(Governor Chandler read letter in full, copy of which is attached)

Now, my friends, I have come to ask you to reconsider it. I shall
ask Mr. Morgan to post the bill on the board, and I say to you that
these people don’t want to make trouble for me. They want to be as
helpful to me as they can. You know in this business you have to
stand the gaff, and if you can’t stand the gaff, you ought to get out of
the game. And I’ve been standing the gaff for a long time, and I'm
ee willing to stand it whenever it comes my turn. And I feel
justified with this sort of communication to present it to you and you
can take such action as you deem necessary under the circumstances
with the certain knowledge that I will accept it. I would leave only
one admonition as I would make with respect to any other industry.
If you want it to survive, please don’t tax it until it will have to close

April 16 HOUSE OF REPRESENTATIVES 329

up. That is true of the power to tax. I repeat, the power to tax is the
power to destroy, and if you are not careful, destruction is a possibility.

And now I would like to say a word about the tax bill. I say the
budget is passed. We need a little money to see that we don’t spend
more than we take in. For nearly four months I had Dr. Martin, in
whom I have great confidence. He is a very articulate fellow. In some
quarters he is the Governor. He would be very well able to discharge
the duties, and if he ever runs, he would get lots of recommendations.
He worked for me twenty years ago, and I have Jearned through ex-
perience that his advice is very sound and very good. I have Mr.
Luckett and Mr. Herzel, and for four months they wrestled with the
tax problem. I never hope to be able to make taxes popular. If that is
an ambition of any of you, I would advise you to get rid of it. They
told me, Mr. Floor Leader, that the tax bills which we recommended
were the most equitable and the finest. Now upon that we can dis-
agree, but if you pass the sales tax, and we brought it out so that we
could let everybody have a chance, I have to tell you what my position
is about it because I think that I have had as much to do the last
twenty-five years keeping the sales tax off perhaps as any other in-
dividual. Don’t make plans to pass the sales tax once. Make plans to
pass it twice because I’m going to send it back to you promptly. I’m
not questioning that you get fifty-one votes and you can pass it, but
you're going to be put to the trouble of doing it twice because I've
got to keep my word. I told everybody in Kentucky.

Now I want to give you some figures, and it is no doubt about
these at all. Over 87% of Kentucky families according to the Federal
statistics make less than $5,000 a year. Some of the boys have been in
and told me that they have beard from their people. Huh, you didn’t
hear from these little people. If you run again you'll hear from them
if you vote for the sales tax. You'll hear from them the next election.
They’re not as articulate, and they haven't got the means of communi-
cation except at the polls. Now that is advice from an old hand. You
know I’m an old politician. I’m an old runner. You don’t have to take
that advice. It is worth what it cost to hear it though, it’s free, and so
free advice is worth what it costs. There are 865,000 families in Ken-
tucky. Under my program the tax burden will be spread over about
565,000 people. Under the sales tax it will be spread over three million,
one hundred odd thousands. That is every living mother, father and
son. Now maybe you can pursuade them that is all right. I know a
Governor once that tried it, and, of course, I learned from him, and if
experience doesn’t teach you anything, you'll have bumps on your
head that you'll wish you hadn’t cultivated.

In addition House Bill 11, no Kentucky corporation — — — you are
going to get the $9,000,000 that Kentucky corporations have already
agreed to pay because I’ve had no protests from them. The bill that
I suggested to you to raise corporation taxes you'll get $9,100,000 in
the next two years, and they've called me and said they are perfectly

330 JOURNAL OF THE April 16

willing to pay it, that it doesn’t hurt them and it still keéps us tied
with Virginia and much lower than all the other substantial Southern
states except Virginia, and at least two points to a point and a half
below Pennsylvania and New York, and no trouble at all with our
competing with industry under this corporation tax bill. Now if you
pass at the earliest possible moment, and I don’t mean to hurry. I
haven't hurried you. You have done pretty well. I don’t think you can
possibly get through this week. I would hope that we would get
through some time next week, and some of you can have another .
pleasant week end at home. I have cooperated with you in every
way, and I know that it has been pleasant not to have anything to do
and still draw pay, and having once been a member of the Legislature,
that’s one of the nice occupations that come to men. I don’t think that
you ought to hurry, but I do think that at 1 o’clock tomorrow if you
will pass bill No. 1, and bill No. 2, and bill No. 8, it doesn’t make
very much difference to me whether you do anything else at all or not.
I can operate the ship and we'll be all right; we'll be in fine shape.

There is one other bill that I would like to call to your attention.
You'll have some opposition to that, but I’ve got to tell you that I think
it ought to be passed. I think a failure to pass it will result in our losing
substantial industry who now will not come to Kentucky because they
want to wait and see what you're going to do with that bill, that is,
the so-called Louisville Annexation Bill. They're afraid. They think
that you're going to stick out a thumb and run around the thumb and
take them in, and as one prominent industrialist said to me on the
phone the other ak he says: “I have no objection to being taken into
the City of Louisville if in the normal course of events the city grows
and encompass me.” Now what else ought to object when the town
gets around you, but what do you think these fellows go to the country
for. They go to the country because they want room, and because
until they have an opportunity to make some return on their invest-
ment, they don’t want to have to pay the payroll and local and city
taxes. It is as simple as that. Naturally that is no great concern of
mine except that when I’m confronted with the proposition of trying
to argue to industry that this is a good place for them to live and to
provide work for our people, they look at me and say: “Governor, I
can’t come to your state. They will annex me the first or second year
that I’m there, and I can’t afford that.” One of the largest industries
that has recently come to Louisville is now fearful of what may happen
to them, and sick of the fact that they came because they're afraid
that they're going to be annexed before they have time to have an
opportunity to make a reasonable amount of money to get over their
original investment and sort of get themselves established. I present
that for the sound discretion of the sensible members of this Legis-
lature.

I hope sincerely, and I have no doubt about it, that we can get
the tax measures passed in a reasonable time. We can undo some of

April 16 HOUSE OF REPRESENTATIVES 331

the things that we have already done that hurt some of m folks, and
I’m trying to help them do that. I want you to let me help you in
any way that I can. The whole government here will give you any
help that they can give you, and any information that we've got that
belongs to you. There never has been any time that we wouldn't have
given you the information. I didn’t want to give it to the editorial de-
partment of the Courier Journal. I didn’t think that I was bound to
give it to them. I didn’t want to give it to the Sun Republican at
Paducah. Oh, I’m mistaken, that’s a misnomer. It’s the Sun Democrat,
isn’t it? I don’t feel any obligation, but as far as the people of Ken-
tucky, the representatives and the senators, and, Fred, you know that
I haven’t come here except on special occasions when you've invited
me, or when it is my duty to come. Everybody can’t have a program.
What do you think would happen if all 188 of you had brought a
program up here? I wouldn’t know which way to go. I think the people
during this period with some knowledge of my record and past per-
formance elected me to lead this thing, and I am trying as God is my
judge to do the best I can. If you can’t take the best advice you can
get, and just do the best you can, what can you do? I would have no
hesitancy and I don’t have all the trouble. You know Eisenhower
vetoed the farm bill today. All the trouble isn’t ours you understand.
Other people have trouble too.

I had not intended to trespass again on your patience. You have
been very kind to me and very considerate. I wish now that you would
just buckle down. You've had the delays. You wanted it; you got it;
you were entitled to have it. You had the hearing. I don’t think that
was satisfactory to the fellows who called it. I wish that it had been
more satisfactory. I would have come. I could have made it more
lively than the fellows who came. Now, I want you to consider will
you — — — just vote on the program that we have given you, and I
predict that if it passes, when you come back two years from now,
our affairs will be in order, we will have kept substantially our com-
mitments, and I want to keep them to the letter if it is humanly
possible, but we will have financed health and welfare and education.
We will build roads, Doctor, and schools and we will be educating
young doctors and dentists, and I think the people of Kentucky — — —
and I wouldn’t single out just Democrats for that. I have had tre-
mendous encouragement and support from Republicans, and I want to
express my appreciation to you, very deep appreciation. What’s good
for you is good for us, and you've got sense enough to know whether
it is good for you or not. You know one of them said to me the other
day, a Republican, a distinguished Republican, when in a public
gathering I complimented the Republicans for their help in the Leg-
islature, he said: “Happy, we helped elect you. We've got to protect
our investment.” And some of them did, Ed, and I know that, but let’s
buckle down now and get this job done, and I think the verdict of our
fellow citizens which we are all anxious to have — — — I know you

332 JOURNAL OF THE April 16

know me well enough to know that I’m not afraid. I'll accept ed re-
sponsibilities whenever they come to me in whatever form or fashion,
and I can only ask that you will also accept yours, and that all of us
ask Almighty God and He is the one from zone to zone guides our
certain plight. You know, we've got some poets here, and I know some
poems too. “He who from zone to zone guides through the boundless
sky thou certain plight, in the long road that we must tread along will
lead our steps aright.”

I want you to join me in asking Almighty God above to direct our
steps so that men may see in another generation that during our time
we kept faith with them.

Thank you and God bless you all.

Representative Morgan moved that the Joint Session of the Gen-
eral Assembly do now dissolve. Agreed.

The Speaker resumed the Chair and called the House to order.

Representative Morgan moved that the rules be suspended for the
purpose of introducing bills. Agreed.
Introduction of Bill

HB 39, by Representative Morgan: AN ACT relating to pari-
mutuel and other systems of betting and the taxation thereof.

Representative Morgan moved that the House adjourn until
12:45 P.M., April 17, 1956. Agreed.

April 17 HOUSE OF REPRESENTATIVES 333

TUESDAY, APRIL 17, 1956
TENTH LEGISLATIVE DAY
The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend H. Glenn Stephens, South Frankfort
Presbyterian Church, Frankfort.

The roll was called. All present except Blue, Highland, Jennings,
Lambert, Lowman, Moore, Rayburn, John B. Reed, Thomas, Tinsley,
and Williamson, who were granted leaves of absence on motion of
Representative Morgan.

Reading of the Journal for April 16, 1956, dispensed with and
the same approved on motion of Representative Isler.

Representative Morgan moved that HB 1 which had been made a
Special Order of Business for 1:00 P.M., April 17, 1956, be placed upon
its passage. Agreed. Representative Morgan moved the Previous
Question. Agreed.

On roll call, the vote was yeas 49—Bates, Beshear, Billington,
Blankenship, Blue, Buchanan, Burnley, Bush, Carter, Casey, Con-
rad, Cottengim, Davidson, Davis, Day, Dunsil, Embry, Everett,
Fitzpatrick, Flanery, Greene, Grigsby, Grundy, Gullette, Harris,
Hawkins, Hill, Hilton, Isler, Johnson, Kubale, Morgan, Newsom, Nun-
nelley, Qualls, Ratcliffe, V. Reed, H. V. Reid, Reynolds, Sloan, Stith,
Thomas, Thompson, Tinsley, Wathen, Weintraub, L. B. Wells, Wilson,
Wirsch. Nays 32—Barnum, Baumgardner, Breathitt, Breckinridge,
Caudill, Freeman, Gay, Griffin, Hadden, Hahn, Heskamp, Heyburn,
Hislope, D. W. Howard, Mackey, Martin, McCallum, McFadden, Mc-
Kinney, Miller, Mullins, Murphy, Nunn, Ockerman, Parrish, Peace,
Ray, R. Reid, Sr., Saylor, Searcy, Tanner, Walsh.

HB 1 was lost for failure to receive a majority of votes.
Representative Freeman moved to amend HB | as follows:

Amend printed copy of HB 1, by striking all the material follow-
ing the enacting clause and substituting in lieu thereof the following:

Section 1. Sections 1 through 27 of this Act shall be known as the
“Kentucky Retailers’ and Consumers’ Sales and Use Tax Act.”

Section 2. A new section of the Kentucky Revised Statutes is
created to read as follows:

As used in Sections 1 through 27, unless the context requires
otherwise:

(1) “Commissioner” means the Commissioner of Revenue.

(2) “Department” means the Department of Revenue.

(8) “Person” includes any individual, firm, copartnership, co-

334 JOURNAL OF THE April 17

operative, nonprofit membership corporation, joint adventure, asso-
ciation, corporation, estate, trust, business trust, receiver, syndicate
or other group or combination acting as a unit.

(4) “Sale” means any transfer of title or possession or both, ex-
change, barter, lease or rental, conditional or otherwise, in any manner
or by any means whatsoever of tangible personal property for a con-
sideration, and includes the fabrication of tangible personal property
for consumers who furnish, either directly or indirectly, the materials
used in fabrication work, and the furnishing, repairing, or serving for
a consideration of any tangible personal property consumed on the
premises of the person furnishing, preparing, or serving such tangible
personal property. A transaction whereby the possession of property
is transferred but the seller retains title as security for the payment of
the price shall be deemed a sale.

(5) “Retail sale” or a “sale at retail” means a sale to a consumer
or to any person for any purpose other than for resale in the form of
tangible personal property, or services taxable under this Act, and
shall mean and include any such transactions as the Commissioner
upon investigation finds to be in lieu of sales; provided that sales for
resale must be made in strict compliance with rules and regulations.
Any dealer making a sale for resale which is not in strict compliance
with rules and regulations shall himself be liable for and pay the tax.
For the purpose of the tax imposed by this Act, these terms shall in-
clude but shall not be limited to the sale or charges for any room or
rooms, lodgings, or accommodations furnished to transients by any
hotel, inn, tourist camp, tourist cabin, or any other place in which
rooms, lodgings, or accommodations are regularly furnished to tran-
sients for a consideration. The tax shall not apply, however, to rooms,
lodgings, or accommodations supplied for a period of ninety con-
tinuous days or more.

(6) The term “gross sales” means the sum total of all retail sales
of tangible personal property or services as defined herein, without any
deduction whatsoever of any kind or character, except as provided in
Section 3 of this Act.

(7) “Sales price” means the total amount for which tangible per-
sonal property or services are sold, including any services that are a
part of the sale, valued in money, whether paid in money or other-
wise, and includes any amount for which credit is given to the pur-
chaser by the seller, without any deduction therefrom on account of
the cost of the property sold, the cost of materials used, labor or service
costs, losses or any other expenses whatsover; provided, that cash
discounts allowed and taken on sales shall not be included, nor shall
the sales price include the amount charged for labor or services ren-
dered in installing, applying, or remodeling or repairing property sold,
finance charges, carrying charges, service charges or interest from
credit extended on sales of tangible personal property under condi-
tional sale contracts or other conditional contracts providing for de-

April 17 HOUSE OF REPRESENTATIVES 335

ferred payments of the purchase price, shall not be considered a part
of the selling price of such property and shall not be added to the sale
price for the purpose of computing the tax imposed by this Act.

(8) “Cost price” means the actual cost of articles of tangible
personal property without any deductions therefrom on account of the
cost of materials used, labor, or service costs, transportation charges,
or any expenses whatsoever.

(9) “Lease or rental” means the leasing or renting of tangible
personal property and the possession or use thereof by the lessee or
rentee for a consideration, without transfer of the title of such prop-
erty.
(10) “Storage” means and includes any keeping or retention in
this state of tangible personal property for use or consumption in this
state, or for any purpose other than sale at retail in the regular course
of business.

. .(11) “Use” means and includes the exercise of any right or power
over tangible personal property incident to the ownership thereof,
except that it shall include the sale at retail of that property in regular
course of business.

(12) “Business” includes any activity engaged in by any person,
or caused to be engaged in by him, with the object of gain, benefit,
or advantage, either direct or indirect.

(13) “Retailer” means and includes every person engaged in the
business of making sales at retail, or for distribution, or use, or con-
sumption, or storage to be used or consumed in this state.

(14) “Tangible personal property” means and includes personal
property, which may be seen, weighed, measured, felt, or touched, or
is in any other manner perceptible to the senses. Tangible personal
property does not include stocks, bonds, notes, insurance or other ob-
ligations or securities.

(15) “Use Tax” referred to in this Act includes the “use, the con-
sumption, the distribution, and the storage” as herein defined.

(16) “Dealer” shall include every person who:

(a) Manufactures or produces tangible personal property for
sale at retail, for use, or consumption, or distribution, or for storage to
be used or consumed in this state;

(b) Imports or causes to be imported, tangible personal property
from any state or foreign country, for sale at retail, for use, or con-
sumption, or distribution, or for storage to be used or consumed in this
state; ©

(c) Sells at retail, or who offers for sale at retail, or who has in
his possession for sale at retail, or for use, or consumption, or distribu-
tion, or storage to be used or consumed in this state, tangible personal
property;

(d) Has sold at retail, or used, or consumed, or distributed, or
stored for use or consumption in this state, tangible property and who
cannot prove that the tax levied by this Act has been paid on the sale

336 JOURNAL OF THE April 17

at retail, the use, the consumption, the distribution, or the storage of
said tangible personal property;

(e) Leases or rents tangible personal property for a consideration,
permitting the use or possession of said property without transferring
title thereto;

(f) Is the lessee or rentee of tangible personal property, and who
pays to the owner of such property a consideration for the use or
possession of such property without acquiring title thereto;

(g) Maintains or has within this state, directly or by a subsidiary,
an office distributing house, sales room, or house, warehouse, or other
place of business.

Section 3. A new section of the Kentucky Revised Statutes is
created to read as follows:

The term “sale at retail’, “use”, “storage” and “consumption”
shall not include:

(1) The sale of admissions to “places of amusement or entertain-
ment” as defined in KRS 188.010(2);

(2) The sale of gasoline as defined in KRS 138.210 (4);

(3) The sale of special fuel as defined in KRS 188.560(8);

(4) The sale of motor vehicles subject to tax under KRS 138.460;

(5) The sale of alcoholic beverages subject to tax under KRS
243.720;

(6) The sale of articles of food intended for off-the-premises
consumption;

(7) The sale of artificial, natural or mixed gas, electricity, trans-
portation, water and telephone and telegraph services;

(8) The sale, use, storage or consumption of industrial materials
for future processing, manufacture or conversion into articles of tan-
gible personal property for resale where such industrial materials
become a component part of the finished product nor shall such terms
include industrial material, other than machinery and machinery repair
parts, that are used directly in the fabricating, converting or processing
of articles of tangible personal property or parts thereof for resale, nor
shall such terms include materials, containers, labels, sacks or bags
used for packaging tangible personal property for shipment or sale;

(9) Professional, insurance, or personal service transactions which
involve sales as inconsequential elements for which no separate charges
are made nor services rendered by repairmen for which a separate
charge is made;

(10) Fertilizer which is applied to land for the growing of crops,
seed or insecticides used for agricultural purposes, or feed for livestock
and poultry;

(11) Sales which a state would be without power to tax under the
limitations of the Constitution of the state or the United States, together
with sales to the State of Kentucky or subdivisions thereof;

(12) Sales of goods made pursuant to bona fide written contracts
entered into before the date of the approval of this Act, or the purchase

April 17 HOUSE OF REPRESENTATIVES 337

price of any building supplies, fixtures or equipment that enter into
or become a part of building or other kind of structure in this state,
where plans, specifications and construction contract for a specific
project has been entered into prior to the date of approval of this Act,
provided delivery is made within ninety days.

Section 4. A new section of the Kentucky Revised Statutes is
created to read as follows:

There is hereby levied and imposed, in addition to all other taxes
of every kind now imposed by law, a privilege or license tax upon
every person who engages in <i business of selling tangible personal
property at retail in this state, or who rents or furnishes any of the
things or services taxable under this Act, or who stores for use or
consumption in this state any item or article of tangible personal prop-
erty as defined herein or who leases or rents such property within this
state, the same to be collected in the amount to be determined by the
application of the following rates against gross sales:

(1) At the rate of three percent of the sales price of each item or
article of tangible personal property when sold at retail in this state
the tax to be computed on gross sales for the purpose of remitting the
amount of tax due the state, and to include each and every retail sale
or amount of taxes collected whichever be the greater.

(2) At the rate of three percent of the cost price of each item or
article of tangible personal property when the same is not sold but is
used, consumed, distributed, or stored for use or consumption in this
state; provided there shall be no duplication of the tax.

(3) At the rate of three percent of the gross proceeds derived from
the lease or rental of tangible personal property, as defined herein,
except the rental of motion picture films, where the lease or rental of
such property is an established business, or part of an established busi-
ness, or the same is incidental or germane to said business.

(4) At the rate of three percent of the monthly lease or rental
price paid by lessee or rentee, or contracted or agreed to be paid by
lessee or rentee, to the owner of the tangible personal property.

(5) At the rate of three percent of the gross sales of all services
taxable under this Act.

Section 5. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) The tax levied under Section 4 shall be collectible as of the
moment of purchase or sale, as the case may be, from all dealers.

(2) The tax shall be collected from the dealer and paid at the
time and in the manner as hereinafter provided. Provided, however,
that any person engaging or continuing in business as a retailer and
wholesaler or jobber shall pay the tax required on the gross proceeds
of retail sales of such business at the rates specified, when proper books
are kept showing separately the gross proceeds of sales for each busi-
ness. If such records are not kept separately, the tax shall be paid as
a retailer or dealer on the gross sales of the business.

338 JOURNAL OF THE April 17

Section 6. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) On all tangible personal property imported, or caused to be
imported from other states or foreign country, and used by him, the
“dealer” shall pay the tax imposed by this Act on all articles of tangible
personal property so imported and used, the same as if the said articles
had been sold at retail for use or consumption in this state. For the
purposes of this Act, the use, or consumption, or distribution, or storage
to be used or consumed in this state of tangible personal property shall
each be equivalent to a sale at retail, and the tax shall thereupon be
immediately levied and collected in the manner provided herein, pro-
vided there shall be no duplication of the tax in any event.

(2) It is not the intention of this Act to levy a tax upon articles
of tangible personal property imported into this state or produced or
manufactured in this state for export, the repairing or storage of such
property in the state for use in another state, nor is it the intention of
this Act to levy a tax on bona fide interstate commerce.

(3) It is, however, the intention of this Act to levy a tax on the
sale at retail, the use, the consumption, the distribution, and the storage
to be used or consumed in this state of tangible personal property after
it has come to rest in this state and has become a part of the mass of
property in this state.

Section 7. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) All gross sales of a retailer are subject to the tax until the
contrary is established. The burden of proving that a sale of tangible
personal property is not a sale at retail is upon the person who makes
the sale unless he takes from the purchaser a certificate to the effect
that the property is purchased for resale.

(2) The certificate relieves the seller from the burden of proof
only if taken in good faith from a person who is engaged in the busi-
ness of selling tangible personal property and who holds the permit
provided for in this Act and who, at the time of purchasing the tan-
gible personal property, intends to sell it in the regular course of busi-
ness or is unable to ascertain at the time of purchase whether the
property will be sold or will be used for some other purpose.

(3) The certificate shall be signed by and bear the name and
address of the purchaser, shall indicate the number of the permit
issued to the purchaser, and shall indicate the general character of the
tangible personal property sold by the purchaser in the regular course
of business. The certificate shall be substantially in such form as the
department may prescribe.

(4) If a purchaser who gives a certificate makes any use of the
property other than retention, demonstration, or display while holding
it for sale in the regular course of business, the use shall be deemed a
retail sale by the purchaser as of the time the property is first used by
him, and the cost of the property to him shall be deemed the gross

April 17 HOUSE OF REPRESENTATIVES 339

receipts from such retail sale. If the sole use of the property other
than retention, demonstration, or display in the regular course of
business is the rental of the property while holding it for sale, the
purchaser may elect to include in his gross receipts the amount of the
rental charged rather than the cost of the property to him.

(5) Ifa purchaser gives a certificate with respect to the purchase
of fungible goods and thereafter commingles these goods with other
fungible goods not so purchased but of such similarity that the identity
of the constitutent goods in the commingled mass cannot be deter-
mined, sales from the mass of commingled goods shall be deemed to
be sales of the goods so purchased until a quantity of commingled
goods equal to the quantity of purchased goods so commingled has
been sold.

Section 8. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) The provision of this Act shall not apply in respect to the use
or consumption, or distribution, or storage of tangible personal prop-
erty for use or consumption in this state upon which a like tax equal
to or greater than the amount imposed by this Act has been paid in
another state, the proof of payment of such tax to be according to
rules and regulations made by the Department. If the amount of tax
paid in another state is not equal to or greater than the amount of tax
imposed by this Act, then the dealer shall pay to the department an
amount sufficient to make the tax paid in the other state and in this
state equal to the amount imposed by this Act.

(2) The “use tax” shall not apply to tangible personal property
owned or acquired in this state, or imported into this state, or held or
stored in this state prior to the effective date of this Act. But, the “use
tax” will apply to all tangible personal property imported or caused to
be imported into this state on or after the effective date of this Act,
unless said property has previously borne a sales or use tax in another
state equal to or greater than the tax imposed by this Act.

Section 9. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) The privilege tax herein levied, measured by retail sales shall
be collected by the dealer from the purchaser or consumer. It is the
purpose and intent of this Act that the tax imposed hereunder is, in
fact, a levy on the retailer or dealer for the privilege of making retail
sales or furnishing services within this state, the tax to be collected by
the retailer or dealer from the purchaser or consumer of the tangible
personal property or services described in this Act at the time the sale
is made or the service rendered.

(2) Dealers shall, as far as practicable, add the amounts of the
tax imposed under this Act to the sales price or charge, which shall be
a debt from the purchaser or consumer to the dealer, until paid, and
shall be ‘recoverable at law in the same manner as other debts. Any

340 JOURNAL OF THE April 17

dealer who shall neglect, fail, or refuse to collect the tax herein pro-
vided, upon any, every, and all retail sales made by him, or his agents,
or employes, of tangible personal property which is subject to the
tax imposed by this Act, shall be liable for and pay the tax himself.

(3) When the tax collected for any period is in excess of three
percent the total tax collected must be paid over to the department less
the compensation to be allowed the dealer as hereinafter set forth.
This provision shall be construed with other provisions of this Act and
give effect so as to result in the payment to the department of the total
tax collected if in excess of three percent.

Section 10. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) The “use tax” as defined herein shall not apply to livestock
and livestock products, to poultry and poultry products, to farm, and
agricultural products, when produced by the farmer and used by him
and the members of his family.

(2) Provided, however, that each and every agricultural com-
modity sold by any person, other than a producer, to any other person,
who purchases not for direct consumption but for the purpose of ac-
quiring raw products for use or for sale in the process of preparing,
finishing, or manufacturing such agricultural commodity for the ulti-
mate retail consumer trade shall be and is exempted from the provisions
of this Act, including payment of the tax applicable to the sale, storage,
use, transfer, or any other utilization or handling thereof, except when
such agricultural commodity is actually sold as a marketable or finished
product to the ultimate consumer, and in no case shall more than one
tax be enacted.

(3) The term “agricultural commodity”, for the purposes hereof,
shall mean horticultural, poultry, and farm products, and livestock
and livestock products.

Section 11. A new section of the Kentucky Revised Statutes is
created to read as follows:

Where used articles are taken in trade, or a series of trades as
a credit or part payment on the sale of new and used articles, the
tax levied by this Act shall be paid on the net difference of the new
or used articles less the credit for the used article.

Section 12. A new section of the Kentucky Revised Statutes is
created to read as follows:

Any person taxable under this Act having both cash and credit
sales may report such sales on either the cash or accrual basis of ac-
counting, and each such person taxable hereunder shall make such
election on the first return filed hereunder. Such election once made
shall be irrevocable except that the department may grant written
permission to any such taxpayer upon written application therefor to
change from one basis to the other under rules and regulations to be

April 17 HOUSE OF REPRESENTATIVES 341

promulgated from time to time by the department. Any person report-
ing as herein provided on a cash basis of accounting shall in each report
include all cash sales made during the period covered by any such
report and also collections made in any such period on credit sales of
prior periods, but not including credit sales made prior to the effective
date of this Act, and pay the tax thereon at the time of filing any such
report. Any person reporting as herein provided on the accrual basis of
accounting shall be allowed a deduction for bad debts under rules and
regulations of the department on the same basis that bad debts are
allowed as a deduction on state income tax returns.

Section 13. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) If any dealer liable for any tax, interest or penalty levied
hereunder shall sell out his business or stock of goods, or shall quit the
business, he shall make a final return and payment within fifteen days
after the date of selling or quitting the business. His successor, succes-
sors, or assigns, if any, shall withhold sufficient of the purchase money
to cover the amount of such taxes, interest, and penalties due and
unpaid until such former owner shall produce a receipt from the de-
partment showing that they have been paid, or a certificate stating that
no taxes, interest, or attalties are due. If the purchaser of a business
or stock of goods shall fail to withhold the purchase money as above
provided, he shall be personally liable for the payment of the taxes,
interest, and penalties accruing and unpaid on account of the operation
of the business by any former owner, owners, or assigns.

(2) In the event any dealer is delinquent in the payment of the
tax herein provided for the department may give notice of the amount
of such delinquency by registered mail to all persons having in their
possessions or under their control any credits or other personal property
belonging to such dealer, or owing any debts to such dealer at the
time of receipt by them of such notice, and thereafter any person so
notified shall neither transfer or make any other disposition of such
credits, other personal property, or debts, until the department shall
have consented to a transfer or disposition, or until thirty days shall
have elapsed from and after the receipt of such notice. All persons so
notified must, within five days after receipt of such notice, advise the
department of any and all such credits, other personal property, or
debts, in their possession, under their control, or owing by them, as the
case may be.

Section 14. A new section of the Kentucky Revised Statutes is
created to read as follows:

It is hereby declared to be the intention of this Act to impose a
tax on the gross proceeds of all leases and rentals of tangible personal
property in this state where the lease or rental is a part of the regularly
established business, or the same is incidental or germane thereto.

342 JOURNAL OF THE April 17

Section 15. A new section of the Kentucky Revised Statutes is
created to read as follows:

As compensation for accounting and remitting the tax levied by
this Act, each dealer shall be allowed one percent of the amount of tax
due and accounted for and remitted to the department in the form of a
deduction in submitting his report and paying the amount due by him;
provided the amount due was not delinquent at the time of payment.

Section 16. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) Every dealer shall on or before the last day of the month fol-
lowing the end of the preceding quarter, report on forms to be pre-
scribed by the department his gross sales or purchases, as the case may
be arising from taxable sales or purchases made during such preceding
quarter.

(2) Gross proceeds from rentals or leases of tangible personal
property shall be reported and the tax shall be paid with respect thereto
in accordance with such rules and regulations as the department may
prescribe.

(3) The department for good cause may extend for not to exceed
thirty days the time for making any returns required under the pro-
visions of this Act.

Section 17. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) In the event any dealer fails to make a report and pay the tax
as provided by this Act, or in case any dealer makes a grossly incorrect
report, or a report that is false or fraudulent it shall be the duty of the
department to make an estimate for the taxable period of retail sales of
such dealer, or of the gross proceeds from rentals or leases of tangible
personal property by the dealer, and an estimate of the cost price of
all articles of tangible personal property imported by the dealer for
use or consumption or distribution or storage to be used or consumed in
this state and assess and collect the tax and interest, plus penalty,
if such have accrued, on the basis of such assessment, which shall be
considered prima facie correct, and the burden to show the contrary
shall rest upon the dealer.

(2) It shall be the duty of every dealer required to make a report
and pay any tax under this Act, to keep and preserve suitable records
of the sales or purchases, as the case may be, taxable under this Act,
and such other books of account as may be necessary to determine
the amount of tax due hereunder, and other information as may be
required by the department and it shall be the duty of every such
dealer, moreover, to keep and preserve, for a period of two years, all
invoices and other records of goods, wares and merchandise, or other
subjects of taxation under this Act and all such books, invoices, and
other records shall be open to examination at all reasonable hours to
the department or any of its duly authorized agents.

April 17 HOUSE OF REPRESENTATIVES 343

(3) In the event the dealer has imported the tangible personal
property and he fails to produce an invoice showing the cost price
of the articles as defined in this Act, which are subject to tax, or the
invoice does not reflect the true or actual cost price, as defined herein,
then the department shall ascertain, in any manner feasible, the true
cost price, and assess and collect the tax with interest plus penalties, if
such have accrued on the true cost price as assessed by him. The assess-
ment so made shall be considered prima facie correct, and the duty
shall be on the dealer to show the contrary.

Section 18. A new section of the Kentucky Revised Statutes is
created to read as follows:

All wholesale dealers and jobbers in this state are hereby required
to keep a record of all sales of tangible personal property made in this
state, whether such sales be for cash or on terms of credit. The record
required to be kept by all wholesale dealers and jobbers shall contain
and include the name and address of the purchaser, the date of the
purchase, the article purchased, and the price at which the article is
sold to the purchaser. These records shall be kept for a period of three
years and shall be open to inspection by the department at all reason-
able hours during the day.

Section 19. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) The department is authorized and empowered to examine at
all reasonable hours during the day the books, records, and other
documents of all transportation companies, agencies, firms, or persons
as defined herein that conduct their business by truck, rail, water,
airplane, or otherwise, in order to determine what dealers, as provided
in this Act, are importing or are otherwise shipping articles or tangible
property which are liable for the tax.

(2) Each dealer shall secure, maintain, and keep for a period of
three years a complete record of tangible personal property received,
used, sold at retail, distributed or stored, leased, or rented within this
state, by said dealer together with invoices, bill of lading, and other
pertinent records and papers as may be required by the department
and all such records shall be open for inspection to the department at
all reasonable hours during the day.

Section 20. A new section of the Kentucky Revised Statutes is
created to read as follows:

The full amount of tax shown to be due on each quarterly return
shall be paid to the department at the time fixed for filing quarterly
returns.

Section 21. A new section of the Kentucky Revised Statutes is
created to read as follows:

In order to prevent the illegal importation of tangible personal
property which is subject to tax in this state, and to strengthen and

344 JOURNAL OF THE April 17

make more effective the manner and method of enforcing payment of
the tax imposed by this Act, the department is hereby authorized and
empowered to put into operation a system of permits whereby any
person or dealer as defined in this Act may import tangible personal
property by truck, automobile, or other means of transportation other
than a common carrier, without having said truck, automobile, or
other means of transportation seized and subject to legal proceeding
for its forfeiture. The application for such permits shall contain in-
formation as the department may require, and such permits may be
issued for such periods and upon such conditions as the department
may desire. Such permit shall be free of cost to the applicant and may
be obtained from the department.

Section 22. A new section of the Kentucky Revised Statutes is
created to read as follows:

In the event purchases are returned to the dealer by the purchaser
or consumer after the tax imposed by this Act has been collected, or
charged to the account of the consumer or user, the dealer shall be
entitled to reimbursement of the amount of tax so collected or charged
by him, in the manner prescribed by the department and in case the
tax has not been remitted by the dealer to the department, the dealer
may deduct the same in submitting his return upon receipt of a signed
statement of the dealer as to the gross amount of such refunds during
the period covered by said signed statement, which period shall not be
longer than ninety days. Provided, however, the amount of the tax
so reimbursed to the dealer shall not include the tax paid upon any cash
retained by the dealer after such return of merchandise.

Section 23. (1) Every person desiring to engage in or conduct
business as a seller in this state shall file with the department an ap-
plication for a “certificate of registration” for each place of business.
Every application for a certificate of registration shall be made upon a
form prescribed by the department and shall set forth the name under
which the applicant transacts or intends to transact business, the loca-
tion of his place or places of business, and such other information as
the department may require.

(2) The department shall grant and issue to each applicant a
separate certificate of registration for each place of business within the
state. A certificate of registration is not assignable and is valid only
for the person in whose name it is issued and for the transaction of
business at the place designated therein. It shall be at all times con-
spiculously displayed at the place for which issued.

(3) A seller whose certificate of registration has been previously
suspended or revoked, shall pay the department a fee of one dollar for
the renewal or issuance of a certificate of registration.

(4) Whenever any person fails to comply with any provisions of
this Act or any rule or regulation of the department relating thereto,
the department upon hearing ‘after giving the person ten days’ notice

April 17 HOUSE OF REPRESENTATIVES 345

in writing, specifying the time and place of hearing and requiring him
to show cause why his certificate of registration should not be revoked,
may revoke or suspend any one or more of the certificates of registra-
tion held by the person. The notice may be served personally or by
registered mail directed to the last known address of the person.

Section 24. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) The department shall have the power to make and publish
reasonable rules and regulations for the enforcement of the provisions
of this Act and the collection of revenues hereunder.

(2) The cost of preparing and distributing the reports, forms and
material needed for the collection of said tax and the inspection and
enforcement duties required herein shall be borne from the general
appropriations to the department.

(3) The department shall administer and enforce the assessment
and collection of the taxes and penalties imposed by this Act and shall
prepare suitable brackets of prices for the collection of the tax imposed,
provided the bracketing shall begin at sixteen cents.

(4) Federal excise taxes shall be excluded by the Commissioner
in collecting the tax imposed on the sale price of any items or com-
modity or value admission or services. The use of tokens is forbidden
and prohibited.

(5) The Commissioner is hereby granted the power and authority
to employ all necessary personnel and to purchase such supplies and
equipment as may be necessary and incur any other necessary expenses
as are proper for the enforcement and administration of this Act.

Section 25. A new section of the Kentucky Revised Statutes is
created to read as follows:

(1) When any dealer shall fail to make any return and pay the
full amount of the tax required by this Act there shall be imposed, in
addition to other penalties provided herein, a specific penalty to be
added to the tax in the amount of five percent, if the failure is for not
more than thirty days with an additional five percent for each addi-
tional thirty days, or fraction thereof, during which the failure con-
tinues, not to exceed twenty-five percent in the aggregate. In the case
of a false or fraudulent return, where wilful intent exists to defraud
the state of any tax due under this Act, a specific penalty of fifty
percent of the tax bill shall be assessed.

(2) When any dealer fails to remit the tax, or any portion thereof,
on or before the day when such tax shall be required by law to be paid,
there shall be added to the amount due interest at the rate of six
percent per annum from the date due until paid.

(3) All penalties and interest imposed by this Act shall be pay-
able and collectible by the department in the same manner is if they
were a part of the tax imposed.

(4) Any dealer who shall fail, neglect, or refuse to collect the

346 JOURNAL OF THE April 17

tax herein provided, either by himself or through his agents or em-
ployes, shall, in addition to the penalty of being liable for and paying
the tax himself, be guilty of a misdemeanor, and upon conviction shall
be punished by a fine of not more than one hundred dollars or im-
prisonment in the county jail for not more than three months, or both.

(5) A person engaged in any business taxable under this Act
shall not advertise or hold out to the public, in any manner, directly
or indirectly that he will absorb all or any part of the tax, or that he
will relieve the purchaser of the payment of all or any part of the
tax. A person who violates this provision with respect to advertising
shall be guilty of a misdemeanor and upon conviction shall be pun-
ished by a fine of not less than twenty-five dollars, nor more than
two hundred fifty dollars, or imprisonment in the county jail for not
exceeding three months, or both.

(6) Any person who violates any provision of this Act for which
violation no specific penalty is provided shall be deemed guilty of a
misdemeanor and upon conviction thereof shall be fined not more than
one hundred dollars or imprisoned in the county jail for not more than
three months, or both.

Section 26. Section 141.020 of the Kentucky Revised Statutes is
amended to read as follows:

(1) An annual tax shall be paid for each taxable year by every
resident individual of this state, upon his entire net income as defined
in this chapter for purposes of taxation, at the following rates, less the
tax credits as authorized by KRS 141.060:

(a) Two percent of the amount of net income not exceeding three
thousand dollars;

(b) Three percent of the amount of net income in excess of three
thousand dollars but not in excess of four thousand dollars;

(c) Four percent of the amount of net income in excess of four
thousand dollars but not in excess of five thousand dollars;

(d) Five percent of the amount of net income in excess of five
thousand dollars but not in excess of eight thousand dollars;

(e) Six percent of the amount of net income in excess of eight
thousand dollars.

(2) An annual tax shall be paid for each taxable year at the rates
specified in subsection (1) of this section upon the entire net income,
except as herein provided, from all tangible property located in this
state, from all intangible property that has acquired a business situs in
this state, and from business, trade, profession, occupation or other
activities carried on in this state, by natural persons not residents of
this state. A nonresident individual shall be taxable only upon the
amount of income received by him from labor performed, business
done or from other activities in this state, from tangible property lo-
cated in this state, and from intangible property that has acquired a
business situs within this state. The remainder of the income received
by him shall be deemed nontaxable by this state.

April 17 HOUSE OF REPRESENTATIVES 347

(3) Subject to the provisions of KRS 141.081 and KRS 141.082,
any individual may elect to pay the tax imposed by KRS 141.025 in
lieu of the tax levied under this section.

Section 27. Section 141.060 of the Kentucky Revised Statutes is
amended to read as follows:

(1) The taxes due, as computed under the provisions of KRS
141.020 or under the provisions of KRS 141.025, shall be credited with
the following amounts:

(a) Forty dollars in the case of an unmarried individual;

(b) Eighty dollars in the case of a married individual or in the
case of a head of a household. If such husband and wife make separate
returns, the tax credit allowed by this subparagraph may be taken by
either or divided between them. The determination of the marital
status for purposes of the credits allowed under this section shall be
made in the manner prescribed in Section 25 (b) (2) of the Internal
Revenue Code;

(d) An additional twenty dollars credit if the taxpayer has at-
tained the age of sixty-five before the close of the taxable year,

(e) An additional twenty dollars credit if the taxpayer's spouse
has attained the age of sixty-five before the close of the taxable year
and a joint return is filed;

(f) An additional twenty dollars credit if the taxpayer is blind
at the close of the taxable year;

(g) An additional twenty dollars credit if the taxpayer’s spouse
is blind at the close of the taxable year and a joint return is filed.

(2) In the case of nonresidents, the tax credits allowable under
subsection (1) of this section shall be that proportion of those permitted
therein that is represented by the ratio of the taxpayer's net income
in this state to his total net income from all sources; or, if the taxpayer
elects to pay the tax under KRS 141.025, as represented by the ratio of
the taxpayer's adjusted gross income in this state to his total adjusted
gross income.

(3) In the case of a fiduciary, other than an estate, the taxes due
as computed under KRS 141.020 and KRS 141.030, shall be credited
with four dollars.

(4) In the case of an estate, the taxes due as computed under
KRS 141.020 and KRS 141.080, shall be credited with twenty-four
dollars.

Section 28. Section 141.180 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Every individual having for the taxable year a net income of
two thousand dollars or over or a gross income of twenty-five hundred
dollars or over, if single, or if married and not living with husband or
wife and every married individual living with husband or wife whose

348 JOURNAL OF THE April 17

net income combined with the net income of his or her spouse exceeds
thirty-six hundred dollars, or whose gross income combined with the
gross income of his or her spouse exceeds forty-five hundred dollars,
shall make to the Department of Revenue a return stating specifically
the items which he claims as deductions and tax credits allowed by this
chapter. If the individual is unable to make his own return, the return
shall be made by a duly authorized agent.

(2) A husband and wife not living together shall make separate
returns. A husband and wife living together may make a joint return,
or may make separate returns.

(3) An optional return properly filed under the provisions of KRS
141.025 shall be deemed sufficient to satisfy the provisions of this
section.

(4) Each individual return shall be verified by a written declara-
tion that it is made under the penalties of perjury.

Section 29. Section 141.360 of the Kentucky Revised Statutes is
amended to read as follows:

The department shall prepare necessary tables required by KRS
141.310 and 141.815 which will assist employers in computing taxes to
be withheld from employes as provided for in those sections. Such
tables shall take due consideration of tax rates and of tax credits as
provided for in KRS 141.020 and 141.060.

Section 30. Sections 26 through 29 shall be applicable to all
taxable years beginning on or after January 1, 1956.

The Speaker ruled the amendment was not in proper form; later
reversed this ruling and ruled that the amendment was in proper form.

Representative Davidson moved the adoption of Amendment No.
1 to Amendment No. 1 to HB 1, as follows:

Amend printed copy of first amendment to HB 1 on page 5, section
3, line 5: Strike out all of line 5.

The Speaker ruled that Amendment No. 1 to Amendment No. 1 to
HB 1 was not in proper form.

Representative Davidson withdrew Amendment No. 1 to Amend-
ment No. 1 to HB 1.

Representative Day moved the adoption of Amendment No. 2 to
Amendment No. 1 to HB I, as follows:

Amend printed copy of amendment No. 1 to HB 1 by adding at
the end of the last page a new section:

Section 81: There is hereby appropriated to the Department of
Revenue out of the General Expenditure Fund for the fiscal year be-
ginning July 1, 1956, and ending June 30, 1957, the sum of six hundred
thousand dollars and for the fiscal year beginning July 1, 1957, and
ending June 80, 1958, the sum of five hundred thousand dollars; such
sums to be used for ordinary recurring expenses of administering this
Act for end of said respective years.

On roll call, the vote was yeas 50—Bates, Beshear, Billington, Blan-

April 17 HOUSE OF REPRESENTATIVES 349

kenship, Burnley, Bush, Carter, Casey, Conrad, Cottengim, Davidson,
Davis, Day, Dunsil, Embry, Everett, Farmer, Flanery, Greene, Grigsby,
Gullette, Harris, Hill, Hilton, Holsclaw, C. S. Howard, Isler, Johnson,
Kubale, Melton, Morgan, Newsom, Nunnelley, Qualls, Ratcliffe, Ray-
burn, V. Reed, H. V. Reid, Reynolds, Sloan, Stith, Thomas, Thompson,
Tinsley, Walsh, Wathen, Weintraub, Williamson, Wilson, Young.
Nays 387—Anderson, Barnum, Baumgardner, Blue, Breathitt, Breckin-
ridge, Bridgers, Caudill, Freeman, Gay, Griffin, Hadden, Hahn, Hawk-
ins, Heskamp, Heyburn, Hinkle, Hislope, D. W. Howard, Lambert,
Mackey, Martin, McCallum, McFadden, McKinney, Miller, Mullins,
Murphy, Nunn, Ockerman, Parrish, Peace, Pollitte, Ray, R. Reid, Sr.,
Saylor, Searcy.

Amendment No. 2 to Amendment No. 1 to HB 1 was adopted.

On roll call, the vote was yeas 30—Anderson, Breathitt, Breckin-
ridge, Bridgers, Caudill, Freeman, Gay, Griffin, Hadden, Hahn, Hes-
kamp, Heyburn, Hinkle, Hislope, D. W. Howard, Lambert, Mackey,
Martin, McCallum, McFadden, McKinney, Mullins, Nunn, Parrish,
Pollitte, Ray, R. Reid, Sr., Saylor, Searcy, Young. Nays 57—Barnum,
Bates, Baumgardner, Beshear, Billington, Blankenship, Blue, Buchanan,
Burnley, Bush, Carter, Casey, Conrad, Cottengim, Davidson, Davis,
Day, Dunsil, Embry, Everett, Farmer, Flanery, Greene, Grigsby, Gul-
lette, Harris, Hill, Hilton, Holsclaw, C. S. Howard, Isler, Johnson,
Kubale, Lowman, Melton, Miller, Morgan, Murphy, Newsom, Nun-
nelley, Qualls, Ratcliffe, Rayburn, V. Reed, H. V. Reid, Sloan, Stith,
Tanner, Thomas, Thompson, Tinsley, Walsh, Wathen, Weintraub,
L. B. Wells, Williamson, Wirsch.

Amendment No. 1 to HB 1 as amended by Amendment No. 2 to
Amendment No. 1 to HB 1 was lost.

Representative Morgan moved the passage of HB 1. Agreed.

On roll call, the vote was yeas 63—Bates, Beshear, Billington, Blan-
kenship, Buchanan, Burnley, Bush, Carter, Casey, Caudill, Conrad,
Cottengim, Davidson, Davis, Day, Dunsil, Embry, Everett, Fitzpatrick,
Flanery, Gay, Greene, Grigsby, Grundy, Gullette, Hahn, Harris Hawk-
ins, Heskamp, Hill, Hilton, Hinkle, C. S. Howard, Johnson, Kubale,
Mackey, Martin, McKinney, Morgan, Mullins, Newsom, Nunn, Nun-
nelley, Peace, Qualls, Ratcliffe, V. Reed, H. V. Reid, R. Reid, Sr.,
Reynolds, Searcy, Sloan, Stith, Thomas, Thompson, Tinsley, Wathen,
Weintraub, L. B. Wells, Williamson, Wilson, Wirsch, Young. Nays
26—Barnum, Baumgardner, Blue, Breathitt, Bridgers, Freeman, Griffin,
Hadden, Heyburn, Hislope, Holsclaw, D. W. Howard, Isler, Lambert,
McCallum, McFadden, Miller, Murphy, Ockerman, Parrish, Ray, Ray-
burn, Saylor, Tanner, Walsh, A. W. Wells.

HB 1 was passed and the title agreed to.

Representative Morgan moved that the vote by which HB 1 was
passed be reconsidered and said motion be laid on the table. Agreed.

350 JOURNAL OF THE April 17

; Senate Message

Senate message announcing the passage of SR 10. Ordered that
SR 10 be referred.

Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.

Report of Committee
Committee on Rules reported HB 6, HB 23, HB 24, HB 38, and
HB 39 with the expression of opinion that the same should pass. Read
at length for the first time and ordered placed in the Calendar.

HB 6: AN ACT amending KRS 341.490 and KRS 341.510.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Section 341.490 of the Kentucky Revised Statutes is
amended to read as follows:

Unemployment Insurance Fund, establishment and_ control.
(1) There shall be a special fund known as the Unemployment In-
surance Fund which shall be administered separate and apart from all
public money or funds of this state. This fund shall consist of:

(a) All contributions and money collected under this chapter,
except those imposed under KRS 341.290 and fines, penalties, and
interest on delinquent contributions collected under KRS 341.300;

(b) Interest earned upon any money in the fund,

(d) All earnings of such property or securities;

(e) All money received from the Federal Unemployment Account
in the Unemployment Trust Fund in accordance with Title XII of the
Social Security Act as amended; and

(f) All money credited to the account of this state in the Unem-
ployment Trust Fund in accordance with Section 903 of the Social
Security Act as amended.

(2) Subject to the provisions of this Act, the Commissioner may
have full power, authority and jurisdiction over the fund, including all
money and property or securities belonging thereto, and may perform
any act necessary or convenient in the administration thereof con-
sistent with this Act.

Section 2. Section 341.510 of the Kentucky Revised Statutes is
amended to read as follows:

Withdrawals from trust fund. (1) Except such money as has
been credited to the account of this state in the Unemployment Trust
Fund under the provisions of Section 903 of the Social Security Act as
amended, and appropriated by legislative action authorized thereunder
for administrative expenses, money shall be requisitioned from the
state’s account in the Unemployment Trust Fund solely for the pay-

April 17 HOUSE OF REPRESENTATIVES 301

ment of benefits and in accordance with regulations prescribed by the
Commission. The Commissioner, through the State Treasurer acting as
his fiscal agent, shall from time to time requisition from the Unem-
ployment Trust Fund such amounts not exceeding the amounts stand-
ing to this state’s accounts therein, as he considers necessary for the
payment of benefits for a reasonable future period.

(2) Upon receipt thereof the treasurer shall deposit such money
in the benefit account and shall issue his vouchers for the payment of
benefits solely from such benefit account. Expenditures of such money
in the benefit account shall not be subject to any provisions of law
requiring specific appropriations or other formal release by state
officers of money in their custody. All vouchers issued by the treasurer
for the payment of benefits and refunds shall bear the signature of the
treasurer and the approval in writing of the Commissioner of Finance.

(8) Any balance of money requisitioned from the Unemployment
Trust Fund that remains unclaimed or unpaid in the benefit account
after the expiration of the period for which such sums were requisi-
tioned shall either be deducted from estimates for, and may be utilized
for the payment of benefits during succeeding periods, or, in the dis-
cretion of the Commissioner, shall be redeposited with the Secretary
of the Federal Treasury to the credit of this state’s account in the
Unemployment Trust Fund, as provided in KRS 341.500.

HB 23: AN ACT concerning escheats.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Section 393.010 of the Kentucky Revised Statutes is
hereby amended to read as follows:

(1) As used in this chapter, unless the context requires otherwise:

(a) “Claim” means to demand payment or surrender of property
from the person whose duty it is to pay the claimant, or surrender to
him the property involved;

(b) “Commissioner” means the Commissioner of Revenue;

(d) “Person” means any individual, state or national bank, federal
instrumentality, partnership, joint stock company, business, trust, asso-
ciation, corporation, or other form of business enterprise, including a
receiver, trustee or liquidating agent.

(2) This chapter does not apply to bonds of counties, cities, school
districts or other tax-levying subdivisions of this state.

Section 2. Section 393.110 of the Kentucky Revised Statutes is
amended to read as follows:

(1) It shall be the duty of all state and national banks, federal
instrumentalities other than Federal courts, trust companies, or other
persons, and courts of this Commonwealth or the agents thereof,
whether holding estates or property as bailee, depository, debtor,

352 JOURNAL OF THE April 17

trustee, executor, liquidator, administrator, distributor, receiver or in
any other capacity coming within the purview of KRS 393.060 to
393.110, to report annually to the department as of July 1, all property
held by them declared by this chapter to be presumed abandoned. The
report shall be filed in the office of the department on or before
September 1 of each year for the proceeding July 1, and shall give the
name of the owner, his last known address, the amount and kind of
property, and such other information as the department may require
for the administration of this chapter. The report shall be made in
duplicate; the original shall be retained by the department, and the
copy shall be mailed to the sheriff of the county where the property is
located or held. It shall be the duty of the sheriff to post said copy on
the courthouse door or the courthouse bulletin board, and also to
publish said copy in at least two issues of a newspaper published in
the county seat or, if no newspaper is published in the county seat,
then in a newspaper of general circulation in the county. The list shall
be published within thirty days of its receipt by the sheriff. The cost
of the publication shall be paid by the state. The sheriff shall imme-
diately certify in writing to the department the dates when the list
was posted and published. The list shall be posted and published as
required on or before October | of the year when it is made, and such
posting and publishing shall be constructive notice to all interested
parties and shall be in addition to any other notice provided by statute
or existing as matter of law.

(2) Any person who has made a report of any estate or property
presumed siendocsd: as required by Chapter 393 of the Kentucky
Revised Statutes, shall, between November 1 and November 15 of each
year, turn over to the Department all property so reported; but if the
person making the report or the owner of the property shall certify to
the Department by sworn statement that any or all of the statutory
conditions necessary to create a presumption of abandonment no longer
exist or never did exist or shall certify the existence of any fact or
circumstance which has a substantial tendency to rebut such presump- .
tion, then, the person reporting or holding the property shall not be
required to turn the property over to the Department except on order
of court. No person shall be required to surrender any property on a
presumption of abandonment to the Department if the period of time
provided by any statute of limitation applicable to the owner’s right
as against the holder has expired unless the court orders him to do so.
If a person files an action in court claiming any property which has
been reported under the provisions of Chapter 393 of the Kentuc
Revised Statutes, the person reporting or holding such property sh
be under no duty while any such action is pending to turn the property
over to the Department, but shall have the duty of notifying the De-
partment of the pendency of such action.

(8) The person reporting or holding the property or any claimant
thereof shall always have the right to a judicial determination of his

April 17 HOUSE OF REPRESENTATIVES 353

rights under Chapter 393 of the Kentucky Revised Statutes and nothing
therein shall be construed otherwise; and the Commonwealth may
institute an action to recover such property as is presumed abandoned
whether it has been reported or not and may include in one complaint
all such property within the jurisdiction of the court in which the action
is brought provided the property of different persons is set out in
separate paragraphs.

Section 3. Section 393.170 of the Kentucky Revised Statutes is
amended to read as follows:

Whenever any property escheated under Chapter 393 of the
Kentucky Revised Statutes by reason of actual abandonment, or death
or presumption of death of the owner without leaving any person
entitled to take the legal or equitable title under the laws of this state
relating to wills, or descent and distribution, has been deposited with,
or in the custody or under the control of, any federal court or other
federal instrumentality in and for any district in this state, or in the
custody of any depository, clerk or other officer of such court or other
federal instrumentality, or has been surrendered by such court or other
federal instrumentality, or their officers, to the United States Treas-

, the circuit court of any county in which such Federal court sits
or such other federal instrumentality is situated shall have jurisdiction
to ascertain whether an escheat has occurred, and to enter a judgment
of escheat in favor of the state. This section does not authorize a judg-
ment to require Federal courts, then officers, agents or depositories to
pay or surrender funds to this state on a presumption of abandonment
as provided in KRS 393.060 to 393.110.

Section 4. Section 393.240 of the Kentucky Revised Statutes is
amended to read as follows:

(1) If any person has property coming within the purview of
KRS 393.020 to 398.050, and also of KRS 393.060 to 393.110, the actions
required to be brought by the county attorney and the commissioner
may be joined, but joinder is not required, and if separate actions are
brought, they shall not be considered as coming within the rule against
splitting a cause of action. The county attorney is not charged with the
duty of enforcing sections KRS 393.060 to 393.120, 393.150 to 393.170.

(2) The procedure for all actions under Chapter 393 of the Ken-
tucky Revised Statutes shall follow the procedure provided by the
Rules of Civil Procedure, unless otherwise provided in this chapter, and
such actions shall be tried without a jury unless a jury is required by
the Federal or State Constitution.

Section 5. Section 393.230 of the Kentucky Revised Statutes is
amended to read as follows:

(1) If any person or the agent of any state court refuses to pay or
surrender intangible property to the department as provided in KRS
393.060 to 393.110, an action may be brought on the relation of the

354 JOURNAL OF THE April 17

Commissioner to force payment or surrender. All property subject to
KRS 393.060 to 393.110 may be listed and included in a single action.

(2) If any intangible property, except deposits paid to the De-
partment by national banks, is presumed abandoned in accordance
with KRS 393.060 to 393.120, the commissioner may at any subsequent
time institute proceedings to establish conclusively that it was actually
abandoned, or that the owner has died and that there is no person
entitled to it.

(3) (a) The procedure to adjudicate an escheat of any intangible
property presumed abandoned under KRS 393.060 to 393.120, whether
such property has been paid over to the department or is in the custody
of any other person, or federal court of other federal instrumentality,
shall be by a special proceeding brought on behalf of the Common-
wealth by and on relation of the Commissioner: (1) filed in the Frank-
lin Circuit Court where the property has been paid to the department,
or is in the custody of, or under the control of any person other than a
federal court or other federal instrumentality, or (2) in the circuit court
where such federal court sits, or other federal instrumentality is situ-
ated, that has custody of or control of such property presumed
abandoned.

(b) There shall be named as defendants:

(1) All last known owners or claimants of such property as is
disclosed by the records of the department or such other person,
federal court or other federal instrumentality having custody or control
of such property, provided however, that if (1) the particular fund or
property does not exceed five hundred dollars, or (2) such last known
owner or claimants, with respect to a particular fund or property, ex-
ceed ten in number, or (8) the records of the Department, person,
federal court or other federal instrumentality fail to disclose the
number of owners or claimants with respect to a particular fund or
property with a reasonable degree of certainty, they may be desig-
nated and described as a class, to wit, as “last known owners or claim-
ants to the fund or property under the control of: (naming the actions
and proceedings by their original court titles, or appropriate abbre-
viations, in court proceedings or naming the fund held by, or to the
credit of, a federal instrumentality or naming the person having control
of such fund or property)” and

(2) All unknown owners or claimants, who may be designated
and described as “unknown owners, or claimants to the fund or prop-
erty under the control of (naming the actions and proceedings by their
original court title, or appropriate abbreviations, in court proceedings
or naming the fund held by, or to the credit of, a federal instrumen-
tality or naming the fund or property held by such other person).”

(c) The complaint shall briefly describe the fund or property
with respect to which the proceeding is brought, and the nature of the
action or proceeding which gave rise to the fund or property. It may
include one or more items, as the commissioner may be advised, with-

April 17 HOUSE OF REPRESENTATIVES 355

out prejudice to his right subsequently to commence proceedings re-
lating to other items not included. It shall also set forth the facts from
which the court may find, or from which a presumption may arise,
that (a) the rightful owner or owners of the fund or property are un-
known; or (b) that such property has been abandoned.

(d) Service of the defendants in the action shall be by personal
service, constructive service, or publication or any combination of such
pes of service as the court may direct in the exercise of its sound

iscretion. The court shall investigate the circumstances of each case
and enter an order directing the type of service it deems feasible and
reasonable in each case, provided that where there are more than 25
claimants to a particular fund service by summons or warning order
shall be presumed unreasonable. Any publication ordered by the court
shall list the names and last known address of all known defendants
and contain the nature and style of the action, and shall be published at
least once each week for four successive weeks in a newspaper of
general circulation in the county or state designated in the order as
being most likely to give notice to such owners or claimants.

Notice of the filing of the complaint shall be served upon the
person having custody or control of such fund or property, or the
clerk of the federal court which has control or custody or has authority
to make orders for the payment of such fund or property, or upon the
local chief administrative officer of any federal instrumentality for the
district and also upon the United States Attorney for the district in
which said court sits or such other federal instrumentality is situated.

(e) Service by publication shall be complete 50 days after the
date of the last advertisement as required by Section D. Any defend-
ant, or any person claiming any property or funds described in the
complaint, shall have 30 days after completion of service to appear,
and the time for all other proceedings shall be governed by the Rules
of Civil Procedure. The answer shall be verified, shall set forth the
true name and address of the claimant and shall set forth in full detail
the basis of his claim.

(f) On application of the Commissioner the Court shall:

(1) Order the Proceedings with respect to items, or portions
thereof, as to which claimants appear, to be severed into one or more
separate proceedings, and allow all such proceedings to proceed
separately.

(2) Amend the proceedings from time to time in any just and
equitable manner.

(g) If the court shall determine that the fund or property, or any
part of such fund or property, has escheated, to the state, it shall enter
an appropriate judgment upon findings of fact and conclusions of
law declaring such fund or property escheated to the state and pay-
able to the State Treasurer through the Commissioner of Revenue.
The findings of any one such set of facts shall not be deemed incon-
sistent with any other such set of facts, and the court may find one

356 JOURNAL OF THE April 17

or more such set of facts. If the court shall determine that any funds
or property or part thereof had not escheated to the state it shall make
separate findings of fact and conclusions of law and shall make a final
order dismissing said action with respect thereto with or without
prejudice to bringing another action as may be proper.

(h) The commissioner shall take appropriate action to collect
and receive such funds or property.

HB 24: AN ACT relating to circuit courts.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. The introductory phrase and subsection (46) of Section
23.050 of the Kentucky Revised Statutes as created by Senate Bill #2,
First Extraordinary Session of the 1956 General Assembly, are amended
to read as follows:

The regular term of each court shall commence in each county at
the following named time, and continue, if business requires it, the
number of days hereinafter prescribed:

Ad = * od a

(46) Breckinridge County at Hardinsburg on the first Monday in
January, for thirty juridical days; the first Monday in May, for eighteen
juridical days; the fourth Monday in August, for thirty juridical days.

Grayson County at Leitchfield, on the second Monday in February,
for thirty juridical days; the fourth Monday in May, for eighteen
juridical days; first Monday in October, for thirty juridical days.

Meade County at Brandenburg, on the third Monday in March,
for thirty juridical days; the third Monday in June, for eighteen juri-
dical days; the second Monday in November, for thirty juridical days.

Section 2. Whereas, it is necessary that the adjustment of terms
of court in the Forty-Sixth Judicial District is made at an et date,
an emergency is declared to exist and this Act shall become effective
upon passage and approval by the Governor.

HB 388: AN ACT relating to the construction of bridges over
boundary line streams between this state and another and the recip-
rocal exemption thereof from taxes.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 132.205 of the Kentucky Revised Statutes is amended to
read as follows:

(1) Any bridge built by an adjoining state, by the government of
the United States, or by any commission created by an Act of Congress,
over a boundary line stream between this state and an adjoining state,
if not operated for a profit, and if connecting with a primary highway
of this state, is declared to be public property used for public purposes

April 17 HOUSE OF REPRESENTATIVES 357

and exempt from taxation unless the adjoining state, or other public
body constructing such bridge, taxes similar bridges built by this
Commonwealth in like manner.

(2) The issuance of bonds for the purpose of amortizing the cost
of construction of such bridges as is described in subsection (1)
hereof shall not affect the tax exemption granted herein.

HB 39: AN ACT relating to pari-mutuel and other systems of
betting and the taxation thereof.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

“Section 1. An excise tax of two percent of the total amount
wagered during the year is hereby imposed upon every non-profit and
nondividend paying association or corporation operating a running
horse track at which betting is conducted through a pari-mutuel or
other similar system. A year as used herein shall begin at 12:01 A.M.
July 1 and end at 12 midnight June 30. The provisions of KRS 188.515,
138.530, 138.540 and 138.550 shall be applicable to the tax hereby im-
posed.”

Orders of the Day

Representative Morgan moved that HB 3 be taken from the
Orders of the Day and placed on passage. Agreed.

Representative Williamson moved to amend HB 38 as follows:

Amend printed copy of HB 8 on page 2, sections 4 and 5, by de-
leting sections four and five in their entirety. Adopted.

Representative Williamson moved to amend HB 8 as follows:

Amend printed copy of HB 3 on page 3, section 6, lines 1 and 2
by striking out the word “record” on line 1, section 6, and the words
“the affidavit and” on line 2. Adopted.

HB 3 read at length as amended. Representative Williamson
moved the Previous Question. Agreed.

On roll call, the vote was yeas 46—Barnum, Bates, Baumgardner,
Beshear, Billington, Blankenship, Bridgers, Buchanan, Burnley, Carter,
Casey, Conrad, Cottengim, Davidson, Davis, Dunsil, Embry, Everett,
Flanery, Greene, Grigsby, Grundy, Gullette, Hahn, Harris, Heyburn,
Hill, Holsclaw, C. S. Howard, Isler, Johnson, Kubale, McFadden,
Melton, Miller, Morgan, Murphy, Newsom, Nunnelley, V. Reed, H. V.
Reid, Reynolds, Walsh, Wathen, Williamson, Wirsch. Nays 34—An-
derson, Blue, Breathitt, Caudill, Freeman, Gay, Griffin, Hadden, Hawk-
ins, Hilton, Hinkle, Hislope, D. W. Howard, Lambert, Lowman,
Mackey, Martin, McCallum, McKinney, Mullins, Nunn, Ockerman,
Parrish, Peace, Pollitte, Ray, R. Reid, Sr., Saylor, Searcy, Tanner,
Thompson, A. W. Wells, L. B. Wells, Young.

HB 3 as amended was passed and the title agreed to.

Representative Morgan moved that the vote by which HB 3 as
amended was passed be reconsidered and said motion be laid on the
table. Agreed.

358 JOURNAL OF THE April 17

Introduction of Bills
HB 40, by Representative Wathen: AN ACT relating to refund of
tax paid on gasoline used in motor boats and other watercraft.

HB 41, by Representative Everett: AN ACT relating to a tax on
amusement admission.

Representative Morgan moved to adjourn until 1:00 P.M., April
18, 1956. Agreed.

April 18 HOUSE OF REPRESENTATIVES 359

WEDNESDAY, APRIL 18, 1956
ELEVENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend H. Glenn Stephens, South Frankfort Pres-
byterian Church, Frankfort.

The roll was called. All present except Bates, Breathitt, Bush,
Cottengim, Davis, Grundy, Gullette, Heskamp, Highland, Lambert,
McFadden, Murphy, Newsom, Nunnelley, Parrish, Qualls, John B.
Reed, Sloan, Thomas, and Weintraub, who were granted leaves of
absence on motion of Representative Morgan.

Reading of the Journal for April 17, 1956, dispensed with and the
same approved on motion of Representative Isler.

Introduction of Resolution

HR 11, by Representative Blankenship: A CONCURRENT RESO-
LUTION memorializing the Congress to enact legislation to provide
for a bridge across the Ohio River between Hawesville, Kentucky and
Cannelton, Indiana.

WHEREAS, Representatve Denton of the State of Indiana has
introduced a bill in the Congress of the United States which, if passed
and approved by the President, would assure the construction of a
bridge across the Ohio River between Hawesville, Kentucky and
Cannelton, Indiana; and

WHEREAS, such bridge would be of immeasurable benefit to
industry of the area as well as a great convenience to the people gen-
erally; and

WHEREAS, it appears that the proposal outlined in the Denton
bill provides the most practical and economical means of financing the
cost of construction of such bridge as well as the soundest method of
fiscal administration of the completed structure; and

WHEREAS, immediate construction of such bridge appears pos-
sible only through favorable action by the Congress on the said Denton
bill,

NOW, THEREFORE,

Be it resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky, the Senate concurring
therein:

Section 1. That the Congress of the United States act, in the
exercise of its broad legislative powers, to provide legislation designed
to assure the construction of a bridge across the Ohio River between
Hawesville, Kentucky and Cannelton, Indiana.

Section 2. That the Clerk of the House of Representatives cause

360 JOURNAL OF THE April 18

copies of this resolution to be transmitted to the President of the Senate

of the United States, the Speaker of the House of Representatives of

the United States and to each member of the Congress.
Representative Blankenship moved adoption of HR 11. Adopted.

Calendar

HB 6, HB 23,-HB 24, HB 38, and HB 39 were taken from the
Calendar and read at length for the second time. Ordered placed in
the Orders of the Day.

Representative Morgan moved that the House do now recess for
15 minutes for a Rules Committee meeting. Agreed. At the appointed
hour, the Speaker resumed the Chair and called the House to order.

Representative Morgan moved that the rules be suspended for
a Committee Report. Agreed.

Report of Committee
Committee on Rules reported HB 19, HB 27 with Committee
Amendment, HB 41, SR 8, and SR 10 with the expression of opinion
that the same should pass. Read at length for the first time and ordered
placed in the Calendar.

HB 19: AN ACT relating to revenue and taxation.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. KRS 186.120 is hereby amended and re-enacted to
read as follows:

(1) Every railway company, sleeping car company, chair car
company, dining car company, gas company, water company, ferry
company, bridge company, street railway company, inter-urban electric
railroad company, express company, electric light company, electric
power company, telephone company, bus line company, common car-
rier trucking company, air transport company, pipe line company, and
every other like company or business performing any public service,
shall, in addition to the other taxes imposed on it by law, annually pay
a tax on its franchise to the state and a local tax theron to the county,
incorporated city, town or taxing district wherein its franchise may be
exercised.

(2) Whenever any individual or association of individuals not
constituting a corporation nor having capital stock engages in the
business of any of the corporations mentioned in subsection (1) of this
section, the capital and property, or the certificates or other evidence
of the rights or interests of the holders thereof in the business or capital
and property employed therein, shall be deemed the capital stock
of that individual or association for the purpose of taxation and all
other purposes under KRS 136.120 to 136.180, in like manner as a
corporation.

(3) The property of such taxpayers shall be classified as operating
tangible, franchise, non-operating tangible, and non-operating in-

April 18 HOUSE OF REPRESENTATIVES 361

tangibles. Non-operating intangibles within the taxing jurisdiction ‘of
the Commonwealth shall be taxable for State purposes only at the
same rate as intangible property of other taxpayers not performing
public services, and tangible property whether operating or non-
operating shall be subject to State and local taxes at the same rate as
the tangible property of other taxpayers not performing public serv-
ices, except as hereinafter provided.

(4) The Department of Revenue shall have sole power to value
and assess all of the property, including the franchise, of every corpora-
tion, company, association, partnership, or person performing any
public service, including those enumerated above and all others to
whom this section may apply, whether or not such operating or non-
operating tangible or non-operating intangible, or franchise values
have heretofore been assessed by said Department, and shall apportion
such assessment of franchise as provided by KRS 186.170 and certify
tangible property to the counties, cities, towns and taxing districts
where said property is situated. Provided, however, that in the case of
a taxpayer whose business is predominantly non-franchise and the
franchise or public service business in which he is engaged is merely
incidental to his principal business, the Department shall in the exercise
of its judgment and discretion, determine from evidence which it may
have or obtain, what portion of the capital and property is devoted to
the public service business subject to assessment by the Department
under this subsection, and shall require the remainder of the property
not so engaged to be assessed by the local taxing authorities.

(5) The Department of Revenue shall likewise have sole power
to value and assess all of the property which hereby is classed as non-
franchise, within the taxing jurisdiction of this Commonwealth of:
(1) every refrigerator car company, tank car company, coal car com-
pany and every like car company, and (2) all of the property within
the taxing jurisdiction of this Commonwealth of every person, corpora-
tion, partnership, or any other business association owning or operating
dredging boats, boats used in drilling oil or gas wells, tugs, barges, and
other water craft used for transportation and operating in the regular
course of business on the navigable waters of this Commonwealth. In
determining the proportion of the value of the property or persons
named in clause (1) above, within the taxing jurisdiction of Kentucky,
the Department shall take into consideration the number of miles
‘travelled within and without Kentucky, by the cars, or other vehicles
belonging to the aforementioned taxpayers, if such information is
available. In determining the proportion of the value of property of
persons named in clause (2) above, within the taxing jurisdiction of
Kentucky, the Department shall allocate to Kentucky that proportion
of the fair cash value of such property as is represented by the ratio
of miles of shore in Kentucky along which such property may operate
to the total number of miles of shore both within and without Kentucky
along which such property may operate. The Department shall not

362 JOURNAL OF THE April 18

certify the assessment of the rolling stock of such companies, to any
county, city, town or taxing district but shall apportion and certify the
operating tangible property, other than rolling stock or water craft to
the counties, cities, towns and taxing districts where such property is
located. The rolling stock and water craft of such taxpayers shall be
taxable for state purposes only at the rate of Two ($2.00) Dollars upon
each One Hundred ($100.00) Dollars of value and shall not be subject
to taxation by any county, city, town or other taxing district. This Act
and this rate shall be applicable as of December 81, 1955, and there-
after.

Section 2. KRS 136.180 is hereby amended and re-enacted to
read as follows:

(1) Every company mentioned in KRS 136.120 shall annually,
between December 31 and March 31 following, make and deliver to
the Department of Revenue a report verified by its president, cashier,
secretary, treasurer, manager or other chief officer or agent, in such
form as the Department may prescribe, showing the following facts:
The name and principal place of business of the company; the kind of
business engaged in; the amount of capital contributed by the owners;
the amount of surplus funds and undivided profits; the value of all
other assets; the total amount of indebtedness as principal; the amount
of gross or net earnings or income, including interest on investments,
and income from all other sources for twelve months next preceding
December 31 of the year for which the report is required; the amount
and kind of tangible property in this state, and where situated, assessed
or liable to assessment in this state, and the fair cash value thereof,
estimated at the price it would bring at a fair voluntary sale. Pro-
vided, however, that rolling stock of interstate carriers and all water
craft shall be reported as provided in KRS 186.140.

(2) In addition, if the company is a corporation, it shall report the
amount of capital stock, prefered or common, and the number of
shares of each; the amount of capital paid-in; the par and real value
of the stock; and the highest price at which such stock was sold at a
bona fide sale within twelve months next before December 31 of the
year for which the report is required to be made.

(83) (a) In addition, if the company is a land carrier operating
over regular routes, it shall also report the length of entire lines
operated, owned, leased or controlled in this state and in each county,
city, and taxing district, and the entire’ lines operated, owned, leased
or controlled in this state and in each county, city, and taxing district,
and the entire lines operated, owned, leased or controlled elsewhere.

(8) (b) If the company is a land carrier operating over irregular
routes, it shall report the number of car or vehicle miles operated in
Kentucky, and the total number of car or vehicle miles operated within
and without Kentucky.

(3) (c) If the reporting taxpayer operates boats, barges, tugs or
other water craft on the navigable waters of this state, it shall report

April 18 HOUSE OF REPRESENTATIVES 363

the number of shore miles travelled by its craft in Kentucky, and the
total number of shore miles travelled within and without Kentucky.

(4) The report shall cover the period of twelve months ending
December 31. The Department may change the date of the reports
to conform to any change in date established by federal regulations,
and may require such additional information regarding the reporting
company’s operations as may be reasonably necessary to a proper
determination of the value of such company’s property within the
taxing jurisdiction of this Commonwealth.

(5) If any company is in the hands or under the control of a
receiver or other person, by order of a court, the receiver or other
person shall make the report required by this section and by KRS—
136.140.

Section 8. KRS 136.140 is hereby amended and re-enacted to
read as follows:

(1) If any taxpayer mentioned in KRS 136.120 (1), whether
foreign or domestic, resident or non-resident, operates and conducts its
business in other states as well as in this state, the report required by
KRS 186.130 shall show the following facts in addition to the other
facts required: The gross and net income or earnings received in this
state and in other states on business done in this state, and the entire
gross receipts of the corporation in this state and elsewhere during the
twelve months next before December 31 of the year for which the
assessment is required to be made. In cases where any of the facts
above required cannot be answered correctly, or will not afford any
valuable information in determining the value of the franchise to be
taxed, the Department of Revenue may excuse the officer from an-
swering such questions.

(2) A railroad corporation that owns or operates a railroad out
of this state shall only be required to return for tangible property
assessment such proportion of the entire value of all its rolling stock
as the number of miles of its railroad in this state bears to the whole
number of miles operated by the corporation in and out of this state.

Section 4. KRS 136.150 is hereby amended and re-enacted to
read as follows:

If any taxpayer fails to report as required by KRS 136.130 and
136,140 on or before March 31 of each year, the Department of Reve-
nue shall ascertain the required facts and values in such manner and

by such means as it deems proper, at the cost of the taxpayer failing to
make the report.

Section 5. KRS 186.160 is hereby amended and re-enacted to
read as follows:

(1) From the reports made pursuant to KRS 136.130 and 186.140,
and from such other evidence as it may have, the Department of
Revenue shall fix the value of the capital stock of the domestic public

364 JOURNAL OF THE April 18

service companies, and from the amount thus fixed shall deduct the
assessed value of all tangible property assessed in this state. The re-
mainder thus found shall be the value of the franchise subject to
taxation, except as provided in subsection (8) of this section and in
KRS 186.170.

(2) Except as provided in subsection (8) of this section, the De-
partment shall fix the value of the capital stock in this state of foreign
public service companies, by capitalizing the net income derived in
this state, or shall fix the entire value of the capital stock of the com-
pany by some other method and then fix the value of the capital stock
in this state by determining from the amount of the gross receipts of
the company the proportion which the gross receipts in this state,
within twelve months next before December 31 of the year for which
the assessment is made, bears to the entire gross receipts. The value
of the capital stock in this state, less the assessed value of the tangible
property assessed in this state, shall be the correct value of the
franchise of the company for taxation in this state.

(3) (a) If the lines or routes of a domestic or foreign railway
company, gas company, water company, ferry company, bridge com-
pany, street railway company, express company, electric light com-
pany, electric power company, telephone company, telegraph com-
pany, press dispatch company, bus line company, common carrier
trucking company, air transport company, palace car company, dining
car company, sleeping car company, chair car company, pipe line
company, or other like company or business performing any public
service, extend beyond the limits of the state, that proportion of the
value of the capital stock which the length of the lines or route
operated, owned, leased or controlled in this state bears to the total
length of the lines or route operated, owned, leased, or controlled in
this state and elsewhere shall be considered in fixing the value of the
corporate franchise of such corporation liable for taxation in this state.

(3) (b) If any of the above-named franchise taxpayers operates
on irregular routes, the Department may, in fixing the value of its
franchise, consider the number of miles operated in this state, as com-
pared with the total number of miles operated within and without this
state. The Department may, however, use any other reasonable method
for determining the proportion of taxpayer's franchise which is property
attributable to business done in this state and may assess an ad valorem
tax thereon.

Section 5. KRS 186.170 is hereby amended and re-enacted to
read as follows:

(1) Unless otherwise provided by law, the franchise of every
public service company shall be liable to taxation in each county, city
or district through or into which the lines owned, operated, leased or
controlled by said public service company pass or are operated, in the
same proportion that the length of the lines or routes in such county,
city, or district bears to the whole length of lines or routes in this state.

April 18 HOUSE OF REPRESENTATIVES 365

(2) f any domestic public service company has all of its owned,
operated, leased or controlled lines or routes outside of this state, the
Department of Revenue shall fix the value of its entire capital stock
as provided in KRS 136.160, and apportion to this state for taxation
therein the proper proportion and not less than 1 percent of its capital
stock. The amount so apportioned shall be the value of its intangible
property, including its franchise, stocks, bonds, securities and choses in
action subject to taxation in this state and in the county, city and
district where its principal place of business in this state is located.

Section 6. KRS 136.180 is hereby amended and re-enacted to
read as follows:

The Department of Revenue shall, immediately after fixing the
value of the franchise and other property of a public service company
for taxation, notify the company of the valuation, and the amount of
assessment for state and local purposes. When the valuation has been
finally determined, the Department shall immediately certify to the
county clerk of each county in which any portion of the franchise or
tangible assessment of the company is liable to local taxation, the
amount thereof liable for county, city or district tax. The certificate
shall be filed by each county clerk in his office, and by him certified to
the proper collection officer of the county, city or taxing district for
collection.

Section 7. KRS 136.181, 136.182, 186.183, 186.184, 136.185,
136.186, and 186.187 are hereby repealed.

All other Jaws and parts of laws in conflict herewith, to the extent
of such conflict, hereby are repealed.

HB 27: AN ACT relating to Revenue and Taxation.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Definitions: As used in this Act, unless the context
requires otherwise:

(1) “Department” means the Department of Revenue.
(2) “Commissioner” means Commissioner of Revenue.

(3) “Insurance company” means any person engaged as principal
in the business of making contracts of insurance; and includes attorneys
for or a reciprocal or interinsurance exchange, or a Lloyds organiza-
tion, or stock, assessment, co-operative, and mutual companies but does
not include:

(a) Societies, companies or associations organized under the
authority and patronage of any church or religious denomination for
the exclusive purpose of insuring the property of churches or religious
denominations, and the personal property or lives of the pastors and
ministers thereof.

366 JOURNAL OF THE April 18

(b) Fraternal benefit societies, hospital service corporations,
medical service corporations, or burial associations.

(c) Domestic assessment or co-operative insurance companies
organized and operating under Chapter 299 of the Kentucky Revised
Statutes; and domestic mutual insurance companies.

(d) Workman’s Compensation premiums tax under Chapter 342
of the Kentucky Revised Statutes.

(4) “Person” means any individual, company, association, organi-
zation, group, attorneys for or a reciprocal or interinsurance exchange,
partnership, business trust, corporation or ees

(5) “Insurance” means any contract whereby one undertakes to
indemnify another, or pay a specified amount upon determinable con-
tingencies; and includes but is not limited to fire and allied lines,
casualty, surety, fidelity, guaranty, annuity, credit, group, health and
accident, hospitalization or title insurance contracts.

(6) “Foreign insurance company” means any insurance company
organized under the laws of any other state of the United States or of
the laws of the United States or any foreign country.

(7) “Domestic insurance company” means any insurance com-
pany organized under the laws of this state.

(8) “Unauthorized insurance company” means any insurance
company not authorized to do business in this state.

(9) “Gross premiums” means all amounts charged, paid, received
or credited to the company or its representative in consideration for
insurance and shall include ordinary premiums, deposits, assessments,
policy fees, membership fees, application fees, amounts received for
reinsurance on Kentucky risks from unauthorized companies, and every
other consideration for or incidental to such insurance, including any
charges for services rendered in connection with such insurance.

(10) “Taxable premiums” means gross premiums properly al-
locable to this state less the deductions properly allocable to this state
for:
(a) Returns and refunds made or credited to policyholders on
cancelled policies but no deduction shall be allowed for dividends, and

(b) Policies not taken.

Section 2. Effective January 1, 1956 there is hereby levied an-
nually a tax of 2% percent on all new and renewable taxable premiums
properly allocable to this state of every foreign and domestic insurance
company doing insurance business in this state.

Section 3. Effective January 1, 1956 there is hereby levied an-
nually a tax of 2% percent on the taxable premium paid by all brokers,
agents or persons obtaining insurance, other than life, on property in
this state, or covering persons resident in, or other risks in this state
from any unauthorized insurance company. Any broker, agent or per-
son who insures with any company not authorized to do business in
this state shall be personally liable for the premium tax levied by this
section, unless the tax on such insurance is paid by the company. This

April 18 HOUSE OF REPRESENTATIVES 367

section does not apply to surplus line brokers subject to the provisions
of KRS 304.586 through 304.596.

Section 4. The Department shall administer this Act and shall
have power to prescribe all rules and regulations, procedures and
forms necessary for its enforcement. The Department of Revenue shall
prescribe the method which will properly and fairly allocate the tax-
able premiums reasonably attributable to insurance business done in
this state.

Section 5. In determining the amount of taxable premiums in
this state of any domestic insurance company, all premiums written,
procured, or received in this state shall be deemed written on property
or risks located or resident in this state except such premiums as are
properly allocated to any other state or states and upon which a pre-
mium tax has been paid to such other state or states.

Section 6. On or before March 1 of each year every person
subject to tax under this Act shall file a report under oath for the
preceding calendar year and furnish such information as the Depart-
ment may require.

Section 7, In the event any insurance company shall dissolve or
retire from this state, either voluntarily or involuntarily, during any
calendar year, such dissolution or retirement shall not defeat or excuse
the filing of reports and assessments and collection of taxes imposed
by this Act with respect to premiums during that part of the calendar
year prior to such dissolution or retirement from this state. The report
shall be filed within 60 days after such dissolution or retirement.

Section 8. All taxes collected under this Act shall be paid into
the State General Fund.

Section 9. Any taxpayer aggrieved by any action of the Depart-
ment of Revenue under this Act may protest such action and appeal to
the Kentucky Tax Commission and the Franklin Circuit Court as
provided by KRS 131.110, 131.120, and 181.125.

Section 10. (1) If any person subject to the tax under this Act
fails or refuses to file a report or furnish any information requested in
writing by the Department, the Department may make an estimate of
the taxable premiums from any information in its possession, assess
the tax at not more than twice the amount estimated to be due and
add a penalty of 25 percent of the amount of any deficiency tax
assessed concerning such failure or refusal to file a report or furnish
any information. This penalty shall be in addition to all other applicable
penalties in this section.

(2) If any person subject to tax under this Act fails to make and
file the report required by this Act on or before the due date of the
report or the due date as extended by the Department, then, unless it

368 JOURNAL OF THE April 18

is shown to the satisfaction of the Department that the failure is due to
reasonable cause, five percent of the tax found to be due by the De-
partment shall be added to the tax for each thirty days or fraction
thereof elapsing between the due date of the report and the date on
which filed, but the total penalty shall not exceed twenty-five percent
of the tax.

(3) If any part of the deficiency is due to negligence, or inten-
tional disregard of rules and regulations but without intent to defraud,
five percent of the total amount of the deficiency, in addition to the
deficiency and other penalties provided in this section, shall apply.

(4) If any part of any deficiency is due to fraud with intent to
evade tax, fifty percent of the total amount of the deficiency, in addi-
tion to the deficiency and other penalties provided in this section, shall
apply.

(5) If the tax imposed by this Act, whether assessed by the De-
partment or the taxpayer, is not paid on or before the date prescribed
for its payment, there shall be collected, as a part of the tax, interest
upon the unpaid amount at the rate of six percent per annum from the
date the report was due until payment is actually made to the Depart-
ment. If any assessment made by the Department is not paid within
the time prescribed, or protested in accordance with KRS 131.110,
131.120, and 131.125 the taxpayer shall pay as a penalty, in addition to
the amount of the tax and other applicable penalties, one percent of
the tax for each month the tax remains unpaid.

(6) Any person subject to tax under this Act who willfully fails
to furnish a report or who willfully furnishes a false or fraudulent re-
port or who willfully fails to furnish any information required by the
Department or who willfully furnishes a false or fraudulent statement
to the Department shall for each such failure be subject to a civil
penalty of ten dollars. Such penalty shall be assessed and collected by
the Department.

(7) Any penalty imposed by subsection (1), (2), (3), (4), (5) or
(6) of this section shall be assessed, collected and paid in the same
manner as other taxes.

(8) Every tax imposed by this Act, and all increases, interest and
penalties thereon, shall become, from the time it is due and payable,
a personal debt to the state from the person liable therefor.

(9) In addition to the penalties herein prescribed, any insurance
company, who willfully makes a false return, or who willfully fails to
pay taxes owing, with intent to evade payment of the tax, or any part
thereof shall upon conviction thereof i fined not less than five
hundred dollars nor more than five thousand dollars.

Section 11. Section 136.320 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Each domestic life insurance company doing business in this
state shall pay to the sheriff of the county in which its principal office
is located an annual tax at the rate of fifty cents on each one hundred

April 18 HOUSE OF REPRESENTATIVES 369

dollars of the fair cash value of its outstanding shares of capital stock.
This tax shall be an excise, license or occupational tax, for state pur-
poses only, and shall be in lieu of all excise, license, occupational or
other taxes imposed by the state, or by any county, city or taxing dis-
trict in this state, except the premium tax, and except ad valorem taxes
on the real property of the company, and except, further, that the
county, city and taxing district in which the prinicpal office of the
company is located may impose a tax in the same manner and at the
same rate as national banks, state banks and trust companies are taxed
by the county, city and taxing district pursuant to KRS 136.260.

(2) For the purpose of taxation, the net cash value of, or reserve
on, all outstanding policies of domestic life insurance companies doing
business in this state shall be deemed the property of the respective
policyholders, and shall not be listed for taxation by such companies.

Section 12. Section 299.530 of the Kentucky Revised Statutes is
amended to read as follows:

All domestic mutual fire insurance companies referred to in KRS
299.470 or cooperative and assessment fire insurance companies shall,
on March 1 of each year file with the Department of Revenue a report
showing the taxable premiums contracted for by them in a reinsurance
company during the preceding calendar year, and shall pay a tax to
the state of 2% percent on such taxable premiums paid to any company
not authorized to do business in this state.

Section 13. Section 304.465 of the Kentucky Revised Statutes is
amended to read as follows:

Each domestic mutual insurer shall, on or before March 1, file
with the Department of Revenue each year a report showing the
taxable premiums paid by it during the preceding calendar year to all
reinsurers, and shall accompany such report with payment to this
state of a tax of 2% percent of the taxable premiums so paid to insurers
not authorized to transact business in this state at the time such re-
insurance was so ceded.

Section 14. Section 136.990 of the Kentucky Revised Statutes is
amended to read as follows:

(1) Any county clerk who fails to comply with the provisions of
subsection (2) KRS 186.020 shall be fined not less than ten dollars
nor more than twenty-five dollars.

(2) Any corporation that fails to pay its taxes, penalty and interest
as provided in subsection (2) of KRS 136.050, after becoming delin-
quent, shall be fined fifty dollars for each day the same remains
unpaid, to be recovered by indictment or civil action, of which the
Franklin Circuit Court shall have jurisdiction.

(3) Any public service corporation, or ofticer thereof, that will-
fully fails or refuses to make reports as required by KRS 136.130 and
186.140 shall be fined one thousand dollars, and fifty dollars for each
day the reports are not made after March 31 of each year.

370 JOURNAL OF THE April 18

(4) Any superintendent of schools or county clerk who fails to
report as required by KRS 136.190, or who makes a false report, shall
be fined not less than fifty dollars nor more than one hundred dollars
for each offense.

Any railroad corporation that fails to furnish reports as required
by KRS 186.220 shall be fined not less than five hundred dollars nor
more than ten thousand dollars.

(6) Any officer of a railroad corporation who knowingly makes
false statements relative to the reports required by KRS 136.220 shall
be confined in the penitentiary for not less than one nor more than
five years.

(7) Any person who violates any of the provisions of subsection
(2) of KRS 186.250 shall be fined not more than one thousand dollars.
If the offender is an individual, he may in addition be confined in the
county jail for not more than six months, or both so fined and im-
prisoned. If the offender is a corporation, the principal officer or the
officer responsible for the violation, or both such officers, may be
punished by such imprisonment. The fine shall be in addition to the
penalties provided by subsection (3) of KRS 186.250.

(8) The Director of the Department of Insurance may revoke
the authority of any company or its agents to do business in this state
should any company fail or refuse to file the report and pay the tax
under this Act. The revocation shall be published in some newspaper
of this state.

(9) Where no other penalty is mentioned for failing to do an
act required, or for doing an act forbidden, by this chapter, the penalty
shall be not less than ten dollars nor more than five hundred dollars.

(10) The Franklin Circuit Court shall have jurisdiction of all
prosecutions under subsection (9) of this section.

Section 15. KRS 186.830, 186.340, 186.350, 136.360, 186.370, and
136.390 are hereby repealed.

Section 16. Except as otherwise provided herein this Act shall
become effective as provided by law.

HB 41: AN ACT relating to a tax on amusement admission.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 138.020 is amended to read as follows:

(1) Except as provided in subsection (4) and (5) of this section,
and in KRS 97.130, an excise tax shall be paid on the sale of admission
to places of amusement or entertainment at the following rates: Ad-
mission charges of fifty cents or less shall not be subject to tax; if the
admission charge is in-excess of fifty cents and does not exceed fifty
eight cents, the rate shall be five cents; if the admission charge is in
excess of fifty eight cents and does not exceed one dollar, the rate

April 18 HOUSE OF REPRESENTATIVES 371

shall be five cents plus one cent additional for each ten cents or frac-
tional part therof in excess of fifty eight cents; if the admission charge
is in excess of one dollar, the rate shall be ten cents plus one cent
additional for each twenty five cents or fractional part thereof in excess
of one dollar.

(2) In the case of places of amusement or entertainment at which
food or drink is served and professional entertainers are employed, the
charge for admission shall be deemed to be twenty-five percent of the
total charge made or the amount of the cover charge, if any, which-
ever is greater.

(3) In the case of all amusements or entertainments, the charge
for admission shall be deemed to be the total charge imposed, and if
there is a charge for seating or for special facilities within the place
of amusement or entertainment, the charge for admission shall be
deemed to include both the charge for general admission and the
charge for the seating or other special facilities provided.

(4) Nothing in this section shall be construed to impose a tax
upon admissions to dramatic or musical productions presented by a
civic organization in a park owned by any municipal corporation, if
no pecuniary profits result to any member of the organization, and if
such pecuniary profits as may result to the organization are used ex-
clusively for civic, municipal, educational, charitable or religious
purposes. No admissions shall be tax-free under this subsection unless,
prior to the sale thereof, application for exemption is made to the
Department of Revenue on forms and in accordance with rules and
regulations duly promulgated by it, and unless the department, after
being satisfied that such admissions are tax-free, and in accordance
with such rules and regulations, issues a certificate of exemption.

(5) (a) Nothing in this section shall be construed to impose a
tax upon admissions to athletic contests, plays, concerts or other forms
of amusements or entertainment presented by nonprofit civic, fraternal,
charitable, musical, social or educational clubs or associations if no
professional performers are employed and all profits are used exclu-
sively for civic, charitable, religious or educational purposes within
this state. But no nonprofit association, corporation, organization or
individual shall be entitled to the exemption granted in this section if
any officer, employee, entertainer, member or shareholder shall receive
or be entitled to receive, directly or indirectly, any pecuniary profit
except reasonable compensation for necessary services actually ren-
dered in the ordinary conduct of business.

(b) If any professional entertainers or performers are employed,
all amounts paid for admission are subject to tax unless at least seventy-
five percent of the gross proceeds of admissions are used for charitable,
religious or educational purposes within this state.

(6) It is the intent of this section to impose the tax once only upon
sales of the same services.

SR 8: A CONCURRENT RESOLUTION requesting the Legisla-

372 JOURNAL OF THE April 18

tive Research Commission to make or cause to be made a study to
determine the feasibility, practicability and necessity of establishing
dental clinics and dispensaries for the convenience of dental practi-
tioners and patients.

WHEREAS, there is a critical shortage of dentists in the rural
areas of Kentucky, particularly in the eastern section of the state; and

WHEREAS, this shortage is attributable to dentists being un-
available for various reasons, one of which appears to be lack or in-
adequacy of dental facilities in the rural areas,

NOW, THEREFORE,

Be it resolved by the Senate of the General Assembly of the Com-
monwealth of Kentucky, the House of Representatives concurring
therein:

Section 1. That the Legislative Research Commission is hereby
requested to make or cause to be made a study to determine the
feasibility, practicability and necessity of establishing dental clinics
and dispensaries in strategic locations on or near paved highways,
throughout the Commonwealth of Kentucky.

Section 2. That the commission make or cause to be made recom-
mendations with respect to arrangements whereby dentists making
use of such facilities would reimburse the Commonwealth, in a nomi-
nal amount, for the privilege of such use.

Section 3. That the commission make or cause to be made recom-
mendations as to the location and design of such clinics and dispen-
saries with emphasis being placed upon relatively inexpensive con-
struction at such localities as would provide the greatest accom-
modations for patients and afford the least difficulty and hardship
upon them in getting to such clinic or dispensary.

Section 4. That the results of such study and the recommenda-
tions pursuant thereto be made the subject of a report, said report to
be submitted to the General Assembly not later than the 1958
Regular Session.

SR 10: A CONCURRENT RESOLUTION urging the Federal
Government to construct post office buildings in Kentucky counties
where such facilities are now rented.

WHEREAS, the Federal Government does not own its post
office buildings in 56 counties of the Commonwealth of Kentucky but
rents them at high rates from private owners; and

WHEREAS, construction of such post offices would be a sound
financial investment resulting in more economical conduct of postal
operations; and

April 18 HOUSE OF REPRESENTATIVES 373

WHEREAS, construction of post offices in said counties would
contribute to municipal modemization, community development and
increased employment opportunities; and

WHEREAS, personal income in Kentucky for 1954, the last year
for which complete figures are available, Aedinied one percent, while
personal income for the United States as a whole rose one percent; and

WHEREAS, in 1954 Kentucky ranked fortieth amoung the states
with respect per capital personal income, which was $1216.00 or only
68.7 percent of the national average; and

WHEREAS, large areas of the Commonwealth remain in a state
of economic depression because of the national plight of the coal in-
dustry; and

WHEREAS, farm income in the Commonwealth declined nearly
eight percent in 1955; and

WHEREAS, the number of bankruptcy proceedings in our major
metropolitan areas is rising at a dangerous rate; and

WHEREAS, major public works should be constructed at a time
when the resulting employment and expenditure will halt dangerous
deflationary forces and support the economy;

NOW, THEREFORE,

Be it resolved by the Senate of the Commonwealth of Kentucky,
the House of Representatives concurring therein:

Section 1. That the Honorable Dwight D. Eisenhower, Presi-
dent of the United States, and the Honorable Arthur E. Summerfield,
Postmaster General of the United States, are urged to survey the ad-
visability and feasibility of the immediate construction of post offices
in the following Kentucky counties in which the Federal Government
meee *3: Adair, Allen, Ballard, Bath, Boone, Brack-
en, Bullitt, Butler, Carlisle, Carter, Casey, Clay, Clinton, Cumberland,
Edmonson, Elliott, Gallatin, Grayson, Green, Greenup, Hancock, Hart,
Henry, Hickman, Jackson, Jessamine, Knott, Lee, Leslie, Lewis, Lin-
coln, Livingston, Lyon, McCreary, McLean, Magoffin, Marshall,
Martin, Meade, Menifee, Metcalfe, Monroe, Morgan, Ohio, Oldham,
Owen, Owsley, Powell, Robertson, Rockcastle, Russell, Spencer, Todd,
Wayne, Webster and Wolfe.

Section 2. That the Chief Clerk of the Senate is directed to for-
ward copies of this resolution, properly attested under the seal of the
Commonwealth of Kentucky, to the Honorable Dwight D. Eisenhower,
President of the United States; to the Honorable Arthur E. Summer-
field, Postmaster General of the United States; and to each member of
the Kentucky delegation in the United States Congress.

374 JOURNAL OF THE April 18

Orders of the Day

On roll call, the vote was yeas 74—Anderson, Barnum, Bates,
Baumgardner, Beshear, Billington, Blankenship, Blue, Breathitt,
Breckinridge, Bridgers, Buchanan, Burnley, Bush, Carter, Casey,
Caudill, Conrad, Cornett, Cottengim, Davidson, Davis, Day, Dunsil,
Everett, Farmer, Flanery, Freeman, Gay, Grigsby, Grundy, Gullette,
Hahn, Hawkins, Heyburn, Hill, Hinkle, Hislope, C. S. Howard, D. W.
Howard, Isler, Jennings, Johnson, Kubale, Mackey, Martin, McCallum,
McKinney, Melton, Miller, Moore, Morgan, Mullins, Newsom, Nunn,
Ockerman, Parrish, Peace, Ratcliffe, Ray, Rayburn, V. Reed, H. V.
Reid, R. Reid, Sr., Searcy, Stith, Thomas, Walsh, Wathen, A. W. Wells,
Williamson, Wilson, Wirsch, Young. Nays 0.

HR 4 passed and the title agreed to.

Representative Morgan moved that the vote by which said resolu-
tion was passed be reconsidered and said motion be laid on the table.
Agreed.

HR 3 adopted by voice vote.

HB 9 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 53—Barnum, Bates, Baumgardner,
Beshear, Blankenship, Bridgers, Buchanan, Burnley, Carter, Casey,
Caudill, Cottengim, Davis, Dunsil, Everett, Flanery, Gay, Greene,
Grigsby, Grundy, Harris, Heyburn, Hill, Hislope, C. S. Howard, D. W.
Howard, Isler, Jennings, Johnson, Martin, McKinney, Melton, Miller,
Moore, Morgan, Mullins, Newsom, Parrish, Peace, Pollitte, Ray, H. V.
Reid, R. Reid, Sr., Saylor, Stith, Tanner, Thomas, Thompson, Walsh,
Wathen, A. W. Wells, L. B. Wells, Wirsch. Nays 16—Anderson, Bush,
Conrad, Cornett, Day, Hadden, Hahn, Hawkins, Hilton, Hinkle,
Mackey, Ockerman, Reynolds, Searcy, Wilson, Young.

HB 9 passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

April 18 HOUSE OF REPRESENTATIVES 375

HB 7 taken from the Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 65—Anderson, Barnum, Baumgard-
ner, Beshear, Billington, Blankenship, Blue, Breathitt, Breckinridge,
Buchanan, Burnley, Carter, Casey, Caudill, Conrad, Cornett, Cotten-
gim, Davis, Day, Dunsil, Embry, Everett, Farmer, Flanery, Greene,
Grigsby, Grundy, Hadden, Hahn, Harris, Heyburn, Hill, Hilton, Hinkle,
Hislope, Isler, Jennings, Johnson, Mackey, Martin, McCallum, Mc-
Kinney, Melton, Moore, Morgan, Mullins, Newsom, Parrish, Ratcliffe,
Ray, Rayburn, V. Reed, H. V. Reid, Reynolds, Saylor, Searcy, Stith,
Thompson, Walsh, Wathen, A. W. Wells, L. B. Wells, Wilson, Wirsch,
Young. Nays 4—-Freeman, Lambert, Nunn, Peace.

HB 7 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved the House adjourn until 9:30 A.M.,
April 19, 1956. Agreed.

376 JOURNAL OF THE April 19

THURSDAY APRIL 19, 1956
TWELFTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend H. Clena Stephens, South Frankfort
Presbyterian Church, Frankfort.

The roll was called. All present except Anderson, Buchanan,
Farmer, Flanery, Lambert, Lowman, McFadden, Murphy, Nunnelley,
Qualls, John B. Reed, Sloan, Wathen, and Williamson, who were
granted leaves of absence on motion of Representative Morgan.

Reading of the Journal for April 18, 1956, dispensed with and the
same approved on motion of Representative Isler.

Representative Morgan moved that motion hour be dispensed
with. Agreed.

Report of Committee

Committee on Rules reported HB 80 with the expression of
opinion that the same should pass. Read at length for the first time and
ordered placed in the Calendar.

HB 30: AN ACT relating to revenue and taxation.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section I. Section 132.160 of the Kentucky Revised Statutes is
is amended to read as follows:

(1) (a) Taxes on distilled spirits that may be assessed while in a
bonded warehouse as of January 1, 1951, and January 1 of each year
thereafter, and on which the Federal tax has not been paid, or will not
become due before September 15 after the assessment, shall be due
on the second day of January, May and September next after the Fed-
eral tax becomes due or is paid, or when the spirits are removed from
the warehouse for transfer in bond out of this state except as herein-
after provided.

(b) Taxes on distilled spirits that have been assessed while in
a bonded warehouse as of September 1, 1948, and September 1, 1949,
and on which the Federal tax has not been paid, or will not become due
before the second succeeding September 15 after the assessment, shall
be due on the second day of January, May, and September next after
the Federal tax becomes due or is paid, or when the spirits are removed
from the warehouse for transfer in bond out of this state.

(c) Taxes on distilled spirits that have been assessed as of Jan-
uary 1, 1955 shall be due on the second day of January 1957. Taxes on
distilled spirits that have been assessed as of January 1, 1956 shall
be due on the second day of May 1957.

(d) Any owner or proprietor of a bonded warehouse who fails
to pay the taxes and interest on distilled spirits as provided in this
subsection within fifteen days after they are due shall be deemed
delinquent, and a penalty of eight percent of each year’s taxes due on

April 19 HOUSE OF REPRESENTATIVES 377

the spirits shall attach. The officer authorized to collect the taxes shall
immediately cause such proceedings to be instituted for the collection
of the taxes, with such interest and penalties, as may be provided by
law for the collection of other delinquent taxes.

(2) Taxes on distilled spirits, the payment of which is deferred,
according to the provisions of subsection (1) and subsection (4) (a),
shall bear legal interest from the date on which they would otherwise
have become delinquent according to the provisions of KRS 134.020
(3) if they had not been deferred, until paid.

(3) Taxes on distilled spirits that shall be assessed as of January
1, 1957, and January 1 of each year thereafter, shall become due Sep-
tember 15 following the assessment and shall be subject to all of the
provisions of KRS 134.020 except that taxes due the State shall be paid
direct to the Department of Revenue.

(4) (a) Notwithstanding the provisions of subsection (1) (c) and
subsection (3) providing for current payment, the payments of taxes
on distilled spirits may be deferred according to the provisions of
subsection (1) (a) above upon the finding by the Commissioner of
Revenue that undue hardship would result to the taxpayer or ware-
housemen as the result of the current payment. The findings of the
Commissioner shall be based upon a written application made by the
owner or the person having custody of such distilled spirits in a bonded
warehouse showing that:

(i) The owner of the distilled spirits or the proprietor has insuf-
ficent funds with which to pay the taxes when due without reducing
his working capital below the amount reasonably required and cannot
borrow funds, with which to make such payments, at a rate of interest
of 6% or less; or

(ii) It is impracticable for the person having custody of the
distilled spirits in a bonded warehouse to compel the owner or owners
of the distilled spirits to advance the amount necessary for the pay-
ments of the taxes and it would result in hardship to such person
having custody to himself to pay the taxes on distilled spirits produced
prior to January 1, 1957.

(b) The Commissioner may consider such other information as
the owner or warehouseman may submit to show that the current pay-
ment of taxes causes an undue hardship, and he may require such
additional information as he may deem necessary.

(5) The taxes shall not become due by reason of a mere removal
of the spirits from one bonded warehouse to another bonded ware-
house within this state, but in that event the owner or proprietor from
whose warehouse the spirits are moved shall execute a bond, with
good and sufficient surety, conditioned upon the payment of all taxes
that have accrued upon the spirits, prior to removal, to the county,
city or taxing district from which the spirits are moved. The bond shall
be in an amount sufficient to protect the county, city or taxing district
and shall be approved by the county judge for the county, the mayor

378 JOURNAL OF THE April 19

for the city, the superintendent of any school district involved, and
by the person whose duty it is to collect taxes for any other taxing
taxing district. Prior to the removal of any spirits the owner or pro-
prietor from whose warehouse they are to be removed shall give
written notice of such intention to the county, city or taxing district,
addressed to the officer thereof above mention, and stating the
quantity of spirits to be moved and the name and address of the
warehouse to which they are to be taken. After the spirits are moved,
the owner or proprietor shall notify the same officers of the county,
city or taxing district of the amount of accrued taxes on the spirits
together with interest on the taxes. After any spirits have once been
moved as provided in this section and are moved again, all taxes that
have accrued thereon up to the time of the second removal shall im-
mediately become due and payable to any county, city or taxing dis-
trict to which any taxes have accrued.

(6) It is the intent of the General Assembly that the amount of
taxes paid under Section (I) (c) of this Act which is in excess of the
amount that have been paid prior to the enactment of this act is
nonrecurring revenue and shall be expended by the county taxing
districts and the school taxing districts for capital outlay.

Section II. Section 132.180 of the Kentucky Revised Statutes
is amended to read as follows:

(1) Any person having custody of distilled spirits in a bonded
warehouse on the day as of which the assessment is made shall be
liable for all taxes due thereon, together with all interest and penalties
that may accrue. Any owner, proprietor or custodian of such spirits
who pays the taxes, interest and penalties on the spirits shall have a
lien thereon for the amount paid, with legal interest from day of
payment.

Section III. Section 132.185 of the Kentucky Revised Statutes is
hereby repealed.

Section IV. Section 243.680 of the Kentucky Revised Statutes
is amended to read as follows:

(1) No person shall manufacture distilled spirits in this state
unless he first obtains from the department a permit to engage in the
business of manufacturing distilled spirits. At the time of the issuance
of the permit he shall pay to the state a tax of five cents for each proof
gallon of distilled spirits for which the permit is issued.

(2) (a) No person shall ship or transport or cause to be shipped
or transported into the state any distilled spirits from points without
the state without first obtaining a permit from the department and
paying a tax of five cents on each proof gallon contained in the
shipment.

(b) No railroad company or express company shall receive for
shipment or ship into this state any package or receptacle containing

April 19 HOUSE OF REPRESENTATIVES 379

distilled spirits unless a copy of the permit, showing that payment of
required taxes has been made, accompanies the shipment.

(c) The permit shall be in a form prescribed by the department,
and all shipments into the state shall be governed by regulations
promulgated by the department.

(d) A railroad or express company need not obtain a permit to
transport distilled spirits, but shall be subject to all regulations of the
department.

Section V. Section 243.690 of the Kentucky Revised Statutes is
amended to read as follows:

(1) No person shall engage in the business of blending, rectifying
or mixing distilled spirits, without obtaining from the department a
permit to blend, rectify or mix distilled spirits. An excise tax of five
cents is imposed for each proof gallon of distilled spirits that has not
borne the tax imposed by KRS 243.680 and which is used in said blend-
ing, rectifying or mixing.

(2) A person engaging in the business of blending, rectifying
or mixing distilled spirits shall report on or before the tenth day of
the succeeding month, in such form and stating such facts as may be
prescribed by the department, the amount of distilled spirits blended,
rectified or mixed during the proceeding month. At the time of making
the report, he shall pay the tax due under this section.

Introduction of Bill

HB 42, by Representative Rayburn: AN ACT relating to the label-
ing of distilled spirits.

Calendar

HB 19, HB 27, and HB 41 were taken from the Calendar and read
at length for the second time. Ordered placed in the Orders of the
Day.

a Orders of the Day

HB 38 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed
on passage. Agreed. Read at length the third time. Representative
Morgan moved the Previous Question. Agreed.

On roll call, the vote was yeas 73—Barnum, Bates, Baumgardner,
Beshear, Billington, Blankenship, Blue, Breathitt, Breckinridge,
Bridgers, Burnley, Bush, Carter, Caudill, Conrad, Cornett, Cottengim,
Davidson, Davis, Day, Dunsil, Everett, Flanery, Freeman, Gay,
Greene, Griffin, Grigsby, Grundy, Gullette, Hadden, Hahn, Heyburn,
Hinkle, Hislope, Holsclaw, C. S. Howard, D. W. Howard, Isler, Jen-
nings, Kubale, Mackey, Martin, McFadden, McKinney, Melton, Miller,
Moore, Morgan, Mullins, Newsom, Nunn, Ockerman, Parrish, Peace,
Pollitte, Ratcliffe, Ray, Rayburn, V. Reed, R. Reid, Sr., Searcy, Stith,
Tanner, Thompson, Tinsley, Walsh, Weintraub, A. W. Wells, L. B.
Wells, Wilson, Wirsch, Young. Nays 0.

HB 38 passed and the title agreed to.

380 JOURNAL OF THE April 19

Representative Morgan moved that the vote by which said bill was
passed be reconsidered and said motion be laid on the table. Agreed.

HB 24 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 64—Barnum, Bates, Baumgardner,
Beshear, Billington, Blankenship, Blue, Breathitt, Breckinridge, Bridg-
ers, Burnley, Bush, Carter, Casey, Conrad, Cornett, Davis, Day, Dun-
sil, Embry, Flanery, Freeman, Gay, Griffin, Grundy, Gullette, Hadden,
Hawkins, Heyburn, Hill, Hilton, Hinkle, Hislope, C. S. Howard, D. W.
Howard, Isler, Jennings, Johnson, Mackey, Martin, McCallum, Mc-
Fadden, Melton, Miller, Moore, Morgan, Mullins, Newsom, Nunn,
Ockerman, Peace, Pollitte, Ratcliffe, Ray, V. Reed, R. Reid, Sr., Stith,
Thompson, Walsh, Weintraub, A. W. Wells, Wilson, Wirsch, Young.
Nays—0.

HB 24 passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

HB 6 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 60--Barnum, Bates, Baumgardner,
Beshear, Billington, Blankenship, Blue, Breathitt, Breckinridge, Bridg-
ers, Burnley, Bush, Carter, Casey, Conrad, Cornett, Davis, Day, Dun-
sil, Everett, Flanery, Freeman, Gay, Grigsby, Grundy, Hawkins, Hey-
burn, Hilton, Hinkle, D. W. Howard, Isler, Jennings, Johnson, Mackey,
Martin, McCallum, McFadden, McKinney, Miller, Moore, Morgan,
Mullins, Nunn, Ockerman, Parrish, Peace, Ratcliffe, Ray, Rayburn,
V. Reed, R. Reid, Sr., Saylor, Searcy, Stith, Tanner, Thompson, Tinsley,
L. B. Wells, Wirsch, Young. Nays 0.

HB 6 passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

HB 23 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 69—Barnum, Bates, Baumgardner,
Beshear, Billington, Blankenship, Blue, Breathitt, Breckinridge, Bridg-

April 19 HOUSE OF REPRESENTATIVES 381

ers, Burnley, Bush, Carter, Casey, Conrad, Cornett, Cottengim, Davis,
Day, Dunsil, Everett, Flanery, Gay, Greene, Griffin, Grigsby, Grundy,
Gullette, Hadden, Hahn, Hawkins, Heskamp, Heyburn, Hill, Hilton,
Hinkle, Hislope, Holsclaw, C. S. Howard, D. W. Howard, Isler, Jen-
nings, Johnson, Kubale, Mackey, McCallum, McFadden, McKinney,
Melton, Miller, Moore, Morgan, Mullins, Newsom, Nunn, Peace, Rat-
cliffe, Ray, V. Reed, Saylor, Searcy, Stith, Tanner, Thompson, Walsh,
A. W. Wells, L. B. Wells, Wirsch, Young. Nays 0.

HB 23 passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved the House adjourn until 10:00
A.M., April 20, 1956. Agreed.

382 JOURNAL OF THE April 20

FRIDAY, APRIL 20, 1956
THIRTEENTH LEGISLATIVE DAY

The House was called to order by Speaker F itzpatrick.

Prayer by the Reverend H. Glenn Stephens, South Frankfort
Presbyterian Church, Frankfort.

The roll was called. All present except Barnum, Bridgers, Day,
Embry, Farmer, Grigsby, Highland, Hill, Lambert, McKinney, Moore,
Nunnelley, Rayburn, John B. Reed, Sloan, Wathen, and Weintraub,
who were granted leaves of absence on motion of Representative
Morgan.

Reading of the Journal for April 19, 1956, was dispensed with and
the same approved on motion of Representative Isler.

Introduction of Resolutions and Bill
HR 12, by Representative Burnley: A CONCURRENT RESOLU-
TION requesting the Congress of the United States to enact legislation
under which state excise taxes on production of distilled spirits would
be credited in an amount not exceeding $2 per gallon against Federal
withdrawal tax.

HR 13, by Representative Caudill: A CONCURRENT RESOLU-
TION authorizing the Legislative Research Commission to make a
study of a system of state owned and operated retail alcoholic beverage
outlets.

HB 48, by Representative Newsom: AN ACT relating to the

transportation of pupils.
Calendar

HB 30 was taken from the Calendar and read at length for the
second time. Ordered placed in the Orders of the Day.

Representative Morgan moved that the House do now recess for
10 minutes for a Rules Committee Meeting. Agreed. At the appointed
hour, the Speaker resumed the Chair and called the House to order.

Orders of the Day

HB 41 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 68—Anderson, Bates, Baumgardner,
Beshear, Blankenship, Blue, Breathitt, Breckinridge, Buchanan, Burn-
ley, Carter, Casey, Caudill, Cornett, Cottengim, Davidson, Davis,
Dunsil, Everett, Flanery, Gay, Greene, Griffin, Grundy, Hadden, Hahn,
Harris, Hawkins, Heskamp, Heyburn, Hinkle, Holsclaw, C. S. Howard,
D. W. Howard, Isler, Jennings, Johnson, Mackey, Martin, McCallum,
Melton, Miller, Morgan, Mullins, Murphy, Newsom, Nunn, Parrish,
Peace, Pollitte, Qualls, Ratcliffe, Ray, V. Reed, H. V. Reid, R. Reid,

April 20 HOUSE OF REPRESENTATIVES 383

Sr., Reynolds, Saylor, Searcy, Stith, Thomas, Tinsley, Walsh, A. W.
Wells, Williamson, Wilson, Wirsch, Young. Nays 1—~Thompson.

HB 41 passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved that SR 8 be taken from the Orders
of the Day and placed on passage. Agreed. SR 8 adopted.

Representative Morgan moved that SR 10 be taken from the
Orders of the Day and placed on passage. Agreed. SR 10 adopted.

Representative Burnley moved the adoption of HR 12.

HR 12: A CONCURRENT RESOLUTION requesting the Con-
gress of the United States to enact appropriate legislation under which
state excise taxes on the production of distilled spirits would be
credited, in an amount not exceeding $2 per gallon, against the Federal
withdrawal tax on distilled spirits.

WHEREAS,

(1) Kentucky’s largest industry is the distilling industry. More
than 65% of distilled spirits produced in the United States is produced
in Kentucky. Hence, the distilling industry should constitute a larger
source of excise tax revenue for Kentucky.

(2) However, the Federal Government has imposed a $10.50 per
gallon withdrawal tax on distilled spirits which is more than twelve
times the production cost of a gallon of distilled spirits. No other
product—neither Texas oil nor Oklahoma gas nor Michigan automo-
biles—bears a Federal tax twelve times its cost value. This Federal
tax has made it impractical for Kentucky to impose additional excise
taxes on the production of distilled spirits. A recent study by the
Kentucky Department of Revenue shows that even a small increase
in Kentucky’s present excise tax would have serious effects upon the
distilled spirits industry in Kentucky.

(3) This situation is unfair. It represents a discrimination against
Kentucky which has hindered progress, especially in the field of public
education.

(4) No other state suffers from the Federal tax on distilled spirits
as does Kentucky because the industry is not as concentrated in any
other state. :

(5) If Kentucky could impose a production tax of up to $2 per
gallon on distilled spirits the tax would supplement general revenues
to the point where Kentucky could confidently expect to rise to a
position of equality among her sister states in the fields of education
and public welfare.

(6) The Congress of the United States could, and should, partially
correct this unfair and inequitable discrimination against Kentucky by
treating state excise taxes on the production of distilled spirits, in an

384 JOURNAL OF THE April 20

amount not exceeding $2 per gallon, as a credit against the Federal
withdrawal tax. This would create no new precedent because many
times—as in the case of the Federal Estate Tax—the Congress has
permitted state taxes to be credited against Federal taxes in order to
prevent inequities.

(7) This Assembly believes that this situation arose and continues
because Congress has not been cognizant of its existence, and that a
fully informed Congress will correct it.

NOW, THEREFORE,

Be it resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky, the Senate concurring
therein:

That the Congress of the United States be, and it hereby is, re-
quested to enact appropriate legislation under which state excise
taxes on the production of distilled spirits will be credited, in an
amount not exceeding $2 per gallon against the Federal withdrawal
tax on distilled spirits.

HR 12 adopted.

HB 19 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Isler
moved the Previous Question. Agreed.

On roll call, the vote was yeas 69—Anderson, Bates, Beshear, Bil-
lington, Blue, Breathitt, Breckinridge, Buchanan, Burnley, Carter,
Casey, Caudill, Cornett, Cottengim, Davis, Dunsil, Everett, Flanery,
Freeman, Gay, Greene, Grundy, Hadden, Hahn, Harris, Heskamp,
Hilton, Hinkle, Hislope, Holsclaw, C. S. Howard, D. W. Howard,
Isler, Jennings, Johnson, Kubale, Lowman, Mackey, Martin, McCallum,
McFadden, Melton, Miller, Morgan, Mullins, Murphy, Newsom, Ock-
erman, Parrish, Peace, Pollitte, Qualls, Ratcliffe, Ray, V. Reed, H. V.
Reid, R. Reid, Sr., Saylor, Searcy, Stith, Tanner, Thomas, Thompson,
Tinsley, L. B. Wells, Williamson, Wilson, Wirsch, Young. Nays 0.

HB 19 passed and the title agreed to.

Representative Morgan moved that the vote by which said bill was
passed be reconsidered and said motion be laid on the table. Agreed.

HB 39 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question.

Representative Lowman requested a roll call on the Previous
Question.

On roll call, the vote was yeas 32—Anderson, Beshear, Billington,
Blankenship, Buchanan, Burnley, Carter, Casey, Cottengim, Davidson,

April 20 HOUSE OF REPRESENTATIVES 385

Davis, Dunsil, Everett, Flanery, Greene, Gullette, Harris, Hilton,
Hinkle, Holsclaw, C. S. Howard, Isler, Johnson, Kubale, Morgan,
Newsom, Parrish, Qualls, V. Reed, H. V. Reid, Tinsley, L. B. Wells.
Nays 35—Breathitt, Caudill, Cornett, Freeman, Gay, Griffin, Grundy,
Hadden, Hahn, Heyburn, Hislope, D. W. Howard, Jennings, Lowman,
Mackey, Martin, McCallum, McFadden, Melton, Miller, Mullins,
Murphy, Nunn, Peace, Pollitte, Ratcliffe, Ray, R. Reid, Sr., Saylor,
Searcy, Stith, Tanner, A. W. Wells, Williamson, Wilson.

Previous Question was rejected.

Representative Lowman moved to amend HB 39 as follows:

Amend printed copy of HB 39 on page 1; by striking everything
following the word “Kentucky:” in the enacting clause and substituting
in lieu thereof the following:

“Section 1. The tax imposed by KRS 138.510 upon persons,
corporations or associations which operate a running or trotting horse
race track at which betting is conducted through a pari-mutuel or other
similar system hereby is imposed also upon every nonprofit or non-
dividend-paying association or corporation which operated a running
horse track at which betting is conducted through a pari-mutuel or
other similar system. All of the provisions of KRS 138.510, 138.515,
138.530, 138.540 and 138.550 shall apply.

Section 2. Section 2 of House Bill No. 45, enacted at the Regular
Session of the General Assembly, is repealed.”

Representative Lowman moved a roll call on the amendment.

On roll call, the vote was yeas 46—Anderson, Bates, Baumgardner,
Blankenship, Blue, Breathitt, Buchanan, Caudill, Conrad, Cornett, Free-
man, Gay, Griffin, Grundy, Hadden, Hahn, Hawkins, Heskamp, Hey-
burn, Hinkle, Hislope, D. W. Howard, Jennings, Lowman, Mackey,
Martin, McCallum, McFadden, Miller, Mullins, Murphy, Nunn, Peace,
Pollitte, Ratcliffe, Ray, R. Reid, Sr., Saylor, Searcy, Stith, Tanner,
A. W. Wells, L. B. Wells, Williamson, Wilson, Wirsch. Nays 20—
Beshear, Billington, Burnley, Cottengim, Davidson, Davis, Everett,
Greene, Gullette, Harris, Holsclaw, C. S. Howard, Isler, Johnson,
Kubale, Morgan, Newsom, Parrish, H. V. Reid, Walsh.

Amendment was adopted.

On motion of Representative Clyde S. Howard, a roll call was
taken on adjournment until 8:00 P.M., Monday, April 23, 1956.

On roll call, the vote was yeas 20—Beshear, Billington, Buchanan,
Burnley, Casey, Cottengim, Davidson, Davis, Dunsil, Everett, Flanery,
Greene, Gullette, Harris, C. S$. Howard, Isler, Johnson, Kubale, Morgan,
Reynolds. Nays 44—Anderson, Baumgardner, Blue, Breathitt, Breck-
inridge, Caudill, Conrad, Cornett, Freeman, Gay, Griffin, Grundy,
Hadden, Hahn, Hawkins, Heskamp, Heyburn, Hinkle, Hislope, D. W.
Howard, Jennings, Lowman, Mackey, Martin, McCallum, McFadden,
Melton, Miller, Mullins, Murphy, Nunn, Peace, Pollitte, Ratcliffe, Ray,

386 JOURNAL OF THE April 20

R. Reid, Sr., Saylor, Searcy, Stith, Tanner, A. W. Wells, L. B. Wells,
Williamson, Wilson.

Motion was rejected.

Representative Breckinridge moved to amend HB 39 as follows:

Amend printed copy of HB 39 on page 1; by adding thereto the
following which shall constitute Section 2 thereof:

“Section 2. Notwithstanding KRS 138.530 (2), all revenue re-
ceived under the provisions of this Act shall be paid into the State
Treasury and credited to a special fund to be used by the Agricultural
Experiment Station of the University of Kentucky to implement and
strengthen its program concerning the physiological and chemical
composition of Kentucky tobaccos, for the purpose of developing
tobacco strains containing non-injurious substances. Any unexpended
balance remaining to the credit of the special fund at the end of the
1956-1957 and 1957-1958 fiscal years shall be paid into the General
Expenditure Fund.”

Representative Breckinridge requested a roll call on the amend-
ment.

On roll call, the vote was yeas 25—Breckinridge, Buchanan, Burn-
ley, Cottengim, Davidson, Davis, Dunsil, Everett, Greene, Gullette,
Harris, Holsclaw, C. §. Howard, Isler, Kubale, Melton, Morgan, New-
som, Ockerman, Parrish, V. Reed, H. V. Reid, Thompson, Tinsley,
Walsh. Nays 45—Anderson, Bates, Baumgardner, Beshear, Blankenship,
Blue, Breathitt, Caudill, Conrad, Cornett, Gay, Griffin, Grundy, Had-
den, Hahn, Hawkins, Heskamp, Heyburn, Hilton, Hislope, D. W.
Howard, Jennings, Lowman, Mackey, Martin, McCallum, McFadden,
Mullins, Murphy, Nunn, Peace, Pollitte, Ratcliffe, Ray, R. Reid, Sr.,
Saylor, Searcy, Stith, Tanner, A. W. Wells, L. B. Wells, Williamson,
Wilson, Wirsch, Young.

Amendment No. 2 to HB 89 was rejected.

Representative Burnley moved that HB 89 be made a Special
Order for 8:30 A.M., April 23, 1956.

Representative Burnley moved that a roll call be taken on his
motion.

On roll call, the vote was yeas 33 — Bates, Beshear, Billington,
Blankenship, Buchanan, Burnley, Carter, Casey, Cottengim, Davidson,
Davis, Dunsil, Everett, Flanery, Greene, Gullette, Harris, Hilton, Hols-
claw, C. S. Howard, Isler, Johnson, Kubale, Melton, Morgan, New-
som, Parrish, V. Reed, H. V. Reid, Thomas, Tinsley, Walsh, L. B.
Wells. Nays 42—Anderson, Baumgardner, Blue, Breathitt, Caudill,
Conrad, Cornett, Gay, Griffin, Grundy, Hadden, Hahn, Hawkins, Hes-
kamp, Heyburn, Hislope D. W. Howard, Jennings, Lowman, Mackey,
Martin, McCallum, McFadden, Miller, Mullins, Murphy, Nunn,
Peace, Pollitte, Qualls, Ratcliffe, Ray, R. Reid, Sr., Saylor, Searcy,
Stith, Tanner, Thompson, A. W. Wells, Williamson, Wilson, Young.

Motion was rejected.

April 20 HOUSE OF REPRESENTATIVES 387

Representative Morgan moved the Previous Question. Agreed.

On roll call the vote was yeas 76—Anderson, Bates, Baumgardner,
Beshear, Billington, Blankenship, Blue, Breathitt, Carter, Casey, Caud-
ill, Conrad, Cornett, Cottengim, Davidson, Davis, Dunsil, Everett,
Fitzpatrick, Gay, Greene, Griffin, Grundy, Gullette, Hadden, Hahn,
Harris, Hawkins, Heskamp, Heyburn, Hilton, Hinkle, Hislope, Hols-
claw, D. W. Howard, Isler, Jennings, Johnson, Kubale, Lowman,
Mackey, Martin, McCallum, McFadden, Melton, Miller, Morgan,
Mullins, Murphy, Newsom, Nunn, Ockerman, Parrish, Peace, Pollitte,
Qualls, Ratcliffe, Ray, V. Reed, H. V. Reid, R. Reid, Sr., Reynolds,
Saylor, Searcy, Stith, Tanner, Thomas, Thompson, Tinsley, Walsh,
A. W. Wells, L. B. Wells, Williamson, Wilson, Wirsch, Young. Nays 2
—Burnley, C. S. Howard.

HB 39 as amended was passed and the title agreed to.
Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.
Senate Message
Senate message announcing passage of SB 5 and HB 1 with amend-
ments. Ordered that SB 5 be referred.

Representative Morgan moved the House adjourn until 8:00 P.M.,
Monday, April 23, 1956. Agreed.

388 JOURNAL OF THE April 23

MONDAY, APRIL 23, 1956
FIFTEENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend Fred T. Moffett, First Baptist Church,
Frankfort.

The roll was called. All present except Barnum, Bates, Beshear,
Casey, Caudill, Cottengim, Grigsby, Hislope, Holsclaw, Lowman,
Melton, Murphy, Nunnelley, Ray, John B. Reed, Reynolds, Wathen,
and Weintraub, who were granted leaves of absence on motion of Rep-
resentative Morgan.

Reading of the Journal for April 20, 1956, was dispensed with and
the same approved on motion of Representative Isler.

Senate Message

Senate message announcing passage of SB 2 and SB 7. Ordered
that said bills be referred.

Representative Morgan moved that the House concur in the
following Senate amendment to HB 1:

Amend printed copy of HB 1 on page 2, section 1 (19), lines 22 to
25 and following line 37, by deleting lines 22 to 25, inclusive, in their
entirety and substituting in lieu thereof the following:

Corporations, means “taxable income” as defined in Section 63 (a)
of the Internal Revenue Code adjusted as follows:

By adding immediately following line 37 and before line 38, the
following which shall be paragraph (h) under subsection (9):

Exclude the deduction for personal exemptions allowed under
Section 151 of the Internal Revenue Code and any other deduction in
lieu thereof. Adopted.

Representative Morgan moved that the House concur in the fol-
lowing Senate amendment to HB 1:

Amend printed copy of HB 1 on page 8, section 1 (10), lines 45 to
49 and following line 60, as follows:

Delete lines 45 to 49, inclusive, in their entirety and substitute in
lieu thereof the following:

“taxable income” as defined in Section 63 (a) of the Internal Reve-
nue Code adjusted as follows:

By adding immediately following line 60 and before line 61, the
following which shall be paragraph (g) under subsection (10):

Exclude the special deductions, which relate to dividends and
interest, allowable under Sections 241 to 247, inclusive, of the Inter-
nal Revenue Code. Adopted.

Representative Morgan moved the Previous Question. Agreed.

On roll call, the vote was yeas 53—Bates, Billington, Buchanan,
Burnley, Bush, Carter, Conrad, Cornett, Cottengim, Davidson, Davis,
Day, Dunsil, Embry, Everett, Farmer, F itzpatrick, Flanery, Gay,
Greene, Grundy, Gullette, Hahn, Harris, Hawkins, Highland, Hill,

April 23 HOUSE OF REPRESENTATIVES 389

Hilton, Hinkle, C. S. Howard, Johnson, Kubale, Mackey, Morgan,
Newsom, Parrish, Peace, Qualls, Ratcliffe, V. Reed, H. V. Reid, R.
Reid, Sr., Saylor, Searcy, Sloan, Stith, Thomas, Thompson, Tinsley,
Wathen, L. B. Wells, Wilson, Wirsch. Nays 14—Baumgardner, Breath-
itt, Freeman, Hadden, Hislope, D. W. Howard, Isler, Lambert, McCal-
lum, Ockerman, Ray, Tanner, Williamson, Young.

HB 1 with amendments was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill was
passed be reconsidered and said motion be laid on the table. Agreed.

The Speaker appointed a committee composed of Representatives
Everett, Day, Clyde S. Howard, and Young to inform the Senate that
the House is at ease for the entertainment provided by Senator Mc-
Cann.

Report on Enrolled Bills

Committee on Enrollment reported that HB 1 with amendments
had been examined and found correctly enrolled. Said bill read at
length, compared, and signed in open session by the Speaker. Ordered
delivered to the Senate.

HB 1 with amendments delivered, signed by the President of the
Senate. Ordered delivered to the Governor.

Representative Morgan moved that the House do now recess for
15 minutes for a Rules Committee Meeting. Agreed.

At the appointed hour, the Speaker resumed the Chair and called
the House to order.

Representative Morgan moved that the rules be suspended for a
Committee Report. Agreed.

Report of Committee

Committee on Rules reported SB 5 and SB 2 with the expression
of opinion that the same should pass. Read at length for the first time
and ordered placed in the Calendar.

SB 5: AN ACT relating to school districts.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 160.330 of the Kentucky Revised Statutes is amended to
read as follows:

Each board of education may furnish textbooks and other neces-
sary school supplies free of charge to indigent children in its school
district, including indigent children in high schools or lower grades,
or to such other children as it deems advisable, under such rules and
regulations as it may adopt. The superintendent shall report to the
tax levying authority of the district the number and cost of textbooks
and school supplies needed by the indigent school children of the
district, and the tax levying authority shall appropriate a sum of money
sufficient for the purchase of textbooks and school supplies for such

390 JOURNAL OF THE April 23

children. The sum appropriated annually by the tax levying authority
shall not be less than two hundred dollars in a county school district
and fifty dollars in an independent school district.

SB 2: AN ACT relating to annexation of unincorporated territory
by municipalities in Kentucky.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

(1) The General Assembly, recognizing that the general welfare
and prosperity of the Commonwealth of Kentucky is very greatly
dependent upon continued industrial development and expansion; and
further recognizing that reasonable assurances of fair treatment will
greatly increase industrial development and-expansion in Kentucky, it
hereby is declared to be the public policy of the Commonwealth of
Kentucky to encourage the location of new industries and the ex-
pansion of existing industries in Kentucky by prohibiting unfair and
unreasonable annexation by municipal corporations of industries now
or hereafter located in unincorporated areas. However, it is not the
intent of the General Assembly to prohibit, restrict or hamper normal
expansion of municipal boundaries if such normal development and
expansion extends to and embraces such industrial properties.

(2) No unincorporated territory in which is located an industrial
plant or plants shall be annexed by any municipality unless such
territory is embraced within a broad, comprehensive plan of annexa-
tion. The territory to be annexed shall be contiguous to the boundary
line or lines of such municipality, and the territory or area to be
annexed shall be both compact and contiguous. The number of real
estate owners in the territory proposed to be annexed shall equal or
exceed fifty (50) percent of the average number of persons employed
by industrial plants within such territory during the next preceding
calendar year, the number of such owners of real estate to be deter-
mined by taking the total of such owners from the assessments lists in
the County Tax Commissioner’s office at the close of the next pre-
ceding assessment date.

(3) Nothing herein shall be construed as prohibiting any muni-
cipality from annexing any industrial plant or plants or its properties
if the duly authorized representatives of such industrial plant or plants
consent to or request such action.

(4) Any person or persons within the area proposed to be an-
nexed shall have the right to file a protest and to have the protest
heard and determined as now provided by existing statutes.

(5) All laws and parts of laws in conflict herewith, to the extent
of such conflict, hereby are repealed.

WHEREAS, numerous industries are now considering whether to
expand their industrial plants in Kentucky or locate plants elsewhere,
and

April 23 HOUSE OF REPRESENTATIVES 391

WHEREAS, numerous industries are now considering whether to
locate industrial plants in Kentucky or locate them elsewhere, and

Introduction of Resolutions

HR 14, by Representative Wirsch: A RESOLUTION commending
Clinton L. Smith, Fort Thomas, Kentucky, for the poem titled “OLD
KENTUCKY?” and that it be used by the Division of Publicity for the
purpose of promoting the TOURIST INDUSTRY in Kentucky.

WHEREAS, In this modern age, fast communication, and highly
competitive methods in the advertising of commerce and industry in
the United States; the effort put forth to attract the tourist trade, and

WHEREAS, Our great and beloved Commonwealth has now
awakened to the need for making a concerted drive to bring into our
state those TOURIST DOLLARS, through the medium of effective and
economical advertising material, now therefore be it

RESOLVED; That this branch of the general assembly now in
session and having before it a SPECIALTY item for consideration,
the form and composition befitting our great state, inasmuch as it has
described all those things which made Kentucky famous, and _ for
which we hope to capitalize on by a nation wide distribution, and be
it further

RESOLVED; That the poem titled “Old Kentucky” be now and
henceforth adopted; the work to be used by the Division of Publicity
for the purpose of promoting the TOURIST INDUSTRY in our state.
Since the author and copyright owner, Clinton L. Smith of Fort
Thomas, Kentucky, a native Kentuckian, has expressed his sentiment
thus, and by so doing, he instills in the hearts of all native Kentuckians,
the love and devotion for the Commonwealth, we the assembled mem-
bers of the House of Representatives commend him forthwith.

Representative Wirsch moved adoption of HR 14. Adopted.

HR 15, by Representatives Holsclaw, Cottengim, Davidson,
Moore, Farmer, Bridgers, Walsh, Murphy, Young, Buchanan, Embry,
Harris, Hahn, Ockerman, Kubale, Heyburn, Miller, Blankenship, Ray-
burn, Newsom, Carter, Hilton, Everett, Vernon Reed, Greene, Burnley,
Gullette: A CONCURRENT RESOLUTION expressing appreciation
to the Southern Bell Telephone and Telegraph Company and certain
of its employees for assistance to the General Assembly.

WHEREAS, the Southern Bell Telephone and Telegraph Com-

392 JOURNAL OF THE April 23

pany installed special telephone equipment in Room 314 of the State
Capitol Building for use of the members of the General Assembly, and

WHEREAS, numerous modifications were made in the telephone
installation on the third floor of the State Capitol Building to expedite
the work of the General Assembly and its clerical staff, and

WHEREAS, two employees of the Southern Bell Telephone and
Telegraph Company, Mrs. Margaret Gaines Bennett and Mrs. Dorothy
Dunstall Lea, were asigned to assist Senators and Representatives with
their telephone calls whenever the General Assembly was in session,
and

WHEREAS, the assistance of Mrs. Bennett and Mrs. Lea and the
special equipment installed by the Southern Bell Telephone and Tele-
graph Company have been invaluable in enabling members of the
General Assembly to carry forward legislative business and maintain
close contact with their constituents.

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky, the Senate concurring therein:

Section 1. That the members of the House of Representatives
and Senate of the Commonwealth of Kentucky express their appre-
ciation to the Southern Bell Telephone and Telegraph Company and
to Mrs. Margaret Gaines Bennett and Mrs. Dorothy Dunstall Lea for
their assistance to the General Assembly during the 1956 regular
session and the four extraordinary sessions.

Section 2. That copies of this resolution, properly attested under
the Seal of the Commonwealth, be forwarded to Mr. J. M. Sanders,
District Manager, Southern Bell Telephone and Telegraph Company;
to Mr. Robert Gum, President, Local 3305, Communication Workers of
America; and to Mrs. Margaret Gaines Bennett and Mrs. Dorothy
Dunstall Lea.

Representative Holsclaw moved adoption of HR 15. Adopted.

Representative Morgan moved the House adjourn until 10:00
A.M., April 24, 1956. Agreed.

April 24 HOUSE OF REPRESENTATIVES 393

TUESDAY, APRIL 24, 1956
SIXTEENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend E. W. Baxter of the Episcopal Church,
Frankfort.

The roll was called. All present except Barnum, Beshear, Billing-
ton, Breathitt, Carter, Casey, Caudill, Farmer, Griffin, Grigsby, Gul-
lette, Harris, Hawkins, Heskamp, Clyde S$. Howard, Durham W.
Howard, Kubale, Lambert, Lowman, McCallum, Melton, Moore,
Murphy, Nunnelley, Ray, John B. Reed, Vernon Reed, Howard V.
Reid, Reynolds, Stith, Weintraub, and Williamson, who were granted
leaves of absence on motion of Representative Morgan.

Reading of the Journal for April 23, 1956, was dispensed with
and the same approved on motion of Representative Isler.

Recess
Representative Morgan moved that the House do now recess for
15 mintues for a Rules Committee Meeting. Agreed.
At the appointed hour, the Speaker resumed the Chair and
called the House to order.
Representative Morgan moved that the rules be suspended for
a Committee Report. Agreed.

Report of Committee
Committee on Rules reported SB 7 and HB 43 with the expression
of opinion that the same should pass. Read at length for the first time
and ordered placed in the Calendar.

SB 7: AN ACT relating to unemployment insurance.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. Section 341.350 of the Kentucky Revised Statutes is
amended to read as follows:

Conditions of qualification for benefits. An unemployed worker
shall, except as provided in KRS 841.360 and 341.370, be eligible for
benefits with respect to any week of unemployment only if:

(1) He has made a claim for benefits;

(2) He has registered for work with respect to such week in ac-
cordance with regulations prescribed by the Commission;

(3) He is physically and mentally able to work;

(4) He is available for suitable work;

(5) His base-period wages are not less than four hundred and
fifty dollars; and

(6) He has served a waiting period of one week of unemployment
within his benefit year. No week of unemployment shall be counted
as a waiting period unless the worker has satisfied the conditions of
subsections (1), (2), (3), (4) and (5) of this section.

394 JOURNAL OF THE April 24

Section 2. Section 341.380 of the Kentucky Revised Statutes is
amended to read as follows:

Payment of benefits; amount. (1) All benefits shall be paid
through employment offices, or such other agencies designated by
regulations of the Commission. Claims for all payments of benefits
shall be made in accordance with regulations of the Commission.

(2) Benefits payable to an eligible worker, whose benefit year
begins on or after the effective date of this Act, for weeks of unemploy-
ment shall, except as provided in KRS 341.390, be at the benefit rate
in Column “C” of Table “A” which appears on the same line with
the “Base-Period Wages” of the worker as shown in Column “B” of
the same table.

(3) The maximum amount of benefits payable to any worker
within any benefit year shall be the amount in Column “D” of Table
“A” which apears on the same line with “Base-Period Wages” of such
worker as shown in Column “B” of the same table.

TABLE A

Wage Base-Period Benefit Maximum

Class Wages Rate Amount
(A) (B) (C) (D)
0 Less than $450.00 $ 0.00 $ 0.00
] $ 450.00 - 499.99 8.00 208.00
2 500.00 - 549.99 9.00 234.00
83 550.00 - 599.99 10.00 260.00
4 600.00 - 649.99 11.00 286.00
5 650.00 - 699.99 12.00 312.00
6 700.00 - 749.99 13.00 838.00
7 750.00 - 799.99 14.00 864.00
8 800.00 - 849.99 15.00 390.00
9 850.00 - 899.99 16.00 416.00
10 900.00 - 949.99 17.00 442.00
11 950.00 - 999.99 18.00 468.00
12 1,000.00 - 1,049.99 19.00 494.00
13 1,050.00 - 1,099.99 20.00 520.00
14 1,100.00 - 1,199.99 21.00 546.00
15 1,200.00 - 1,299.99 22.00 572.00
16 1,300.00 - 1,399.99 23.00 598.00
17 1,400.00 - 1,499.99 24.00 624.00
18 1,500.00 - 1,599.99 25.00 650.00
19 1,600.00 - 1,699.99 26.00 676.00
20 1,700.00 - 1,799.99 27.00 702.00
21 1,800.00 - 1,899.99 28.00 728.00
22 1,900.00 - 1,999.99 29.00 754.00
23 2,100.00 - 2,299.99 80.00 780.00
24 2,300.00 2,499.99 31.00 806.00

25 2,500.00 or over 32.00 832.00

April 24 HOUSE OF REPRESENTATIVES 395

HB 48: AN ACT relating to the transportation of pupils.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 158.110 of the Kentucky Revised Statutes is amended to
read as follows:

Boards of education shall furnish transportation from their general
funds or otherwise for pupils of elementary grade or high school grade
who do not reside within reasonable walking distance of the school
provided for them. No charge shall be made for such transportation.
The boards of education shall adopt such rules and regulations as will
insure the comfort, health and safety of the children who are trans-
ported, consistent with the rules and regulations of the State Board of
Education dealing with the transportation of pupils.

SB 2 and SB 5 were taken from the Calendar and read at Jength
for the second time. Ordered placed in Orders of the Day.

Representative Morgan moved that the House adjourn until 11:00
A.M., April 25, 1956. Agreed.

396 JOURNAL OF THE April 25

WEDNESDAY, APRIL 25, 1956
SEVENTEENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend Edward L. Tullis, of the First Methodist
Church, Frankfort.

The roll was called. All present except Anderson, Barnum, Be-
shear, Grigsby, Heyburn, Holsclaw, Clyde S. Howard, Lambert, Miller,
Murphy, Nunnelley, Pollitte, Qualls, Vernon Reed, Reynolds, Wein-
traub, and Lynn B. Wells, who were granted leaves of absence on
motion of Representative Morgan.

Reading of the Journal for April 24, 1956, dispensed with and
the same approved on motion of Representative Isler.

Senate Message
Senate message announcing passage of SR 15 and SR 16.
Representative Morgan moved that the House concur in SR 16.

SR 16: A CONCURRENT RESOLUTION expressing the appre-
ciation of the General Assembly for the efforts of Senator Leon J.
Shaikun and Representative Charles W. Buchanan on behalf of the
Joint Committee on Insurance Investigation.

WHEREAS, the Joint Committee on Insurance Investigation, es-
tablished by Senate Resolution No. 6, has completed the duties imposed
upon it by the General Assembly of the Commonwealth of Kentucky;
and

WHEREAS, the completion of the said committee’s duties in an
orderly, efficient and expeditious manner was due, in large measure
to the productive and untiring efforts of Senator Leon J. Shaikun and
Representative Charles W. Buchanan; and

WHEREAS, the efforts of the said Senator Shaikun and Repre-
senative Buchanan were exerted in the interest of the welfare of the
citizens of the Commonwealth and were in addition to the arduous
and time consuming duties of each in representing his respective con-
stituency in the General Assembly,

NOW, THEREFORE,

Be it resolved by the Senate of the General Assembly of the Com-
monwealth of Kentucky, the House of Representatives concurring
therein:

That the General Assembly of the Commonwealth of Kentucky
does hereby express its appreciation to Senator Leon J. Shaikun and
Representative Charles W. Buchanan for their efforts on behalf of the
Joint Committee on Insurance Investigation and does commend them
on the quality and thoroughness of their work,

April 25 HOUSE OF REPRESENTATIVES 397

SR 16 was adopted.
Representative Morgan moved that the House concur in SR 15.

SR 15: A CONCURRENT RESOLUTION providing for sine die
adjournment of the Fourth Extraordinary Session of the 1956 General
Assembly.

Be it resolved by the Senate of the Commonwealth of Kentucky,
the House of Representatives concurring therein:

That when the Senate and the House of Representatives adjourn
on April 27, 1956, they do adjourn sine die.

SR 15 was adopted.

Representative Morgan moved that the House do now recess for
15 minutes for a Rules Committee Meeting. Agreed.
At the appointed hour, the Speaker resumed the Chair and called
the House to order.
Calendar
SB 7 and HB 48 were taken from the Calendar and read at length
for the second time. Ordered placed in Orders of the Day.

Introduction of Bill

HB 44, by Representatives Breckinridge, Young, Mullins, Peace,
McKinney, Conrad, Tanner, Robert Reid, Hahn, McFadden, Hawkins,
Mackey, Heskamp, Cornett, A. W. Wells, Ratcliffe, Wilson, Bush,
Moore, Hislope, Highland, Sloan, Thomas, Ockerman, Grundy, Had-
den, Heyburn, Anderson, Pollitte, Wirsch, Hinkle, Blue, Baumgardner,
Searcy, Everett, Billington, Freeman, Martin, Nunn, Carter, Bridgers,
Embry, Gay, Parrish, McCallum, Day, Breathitt, Jennings, Murphy,
Ray, Saylor, Flanery, Blankenship, L. B. Wells, D. W. Howard, Wil-
liamson, Melton, Reynolds, V. Reed, H. V. Reid, Miller: AN ACT re-
lating to revenue and taxation to méet the needs and requirements of
the Commonwealth of Kentucky.

Orders of the Day

SB 2 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed. Read at length the third time. Representative Morgan
moved the Previous Question.

A roll call was requested on the Previous Question.

On roll call, the vote was yeas 42—Bates, Billington, Blankenship,
Buchanan, Burnley, Carter, Casey, Cottengim, Davidson, Davis, Day,
Dunsil, Embry, Everett, Flanery, Greene, Grigsby, Gullette, Harris,
Heskamp, Hilton, Hinkle, Isler, Johnson, Kubale, Melton, Morgan,
Newsom, Ratcliffe, Rayburn, J. B. Reed, V. Reed, H. V. Reid,.R. Reid,
Sr., Searcy, Sloan, Stith, Thomas, Thompson, Tinsley, Wathen, Wilson.
Nays 22—Baumgardner, Breathitt, Breckinridge, Caudill, Conrad,
Cornett, Farmer, Griffin, Holsclaw, D. W. Howard, Lowman, Mackey,

398 JOURNAL OF THE April 25

McCallum, Moore, Murphy, Ockerman, Ray, Saylor, Tanner, Walsh,
A. W. Wells, Bridgers.

Previous Question was rejected.

Representative Ray moved to amend SB 2 as follows:

Amend printed copy of SB 2 on page 2, section 2, lines 15 through
28: Amend Senate Bill No. 2 on Page 2 by striking out subsection (2)
thereof, and inserting in lieu thereof the following:

(2) “The territory to be annexed shall be contiguous to the boun-
dary line or lines of such municipality, and the territory or area to be
annexed shall be both compact and contiguous.”

Representative Ray requested a roll call on amendment to SB 2.

On roll call, the vote was yeas 20—Baumgardner, Breathitt, Breck-
inridge, Bridgers, Caudill, Cornett, Farmer, Hadden, Holsclaw, Low-
man, McCallum, McKinney, Mullins, Murphy, Ockerman, Parrish, Ray,
Tanner, Walsh, A. W. Wells. Nays 48—Bates, Billington, Blankenship,
Buchanan, Burnley, Bush, Carter, Casey, Cottengim, Davidson, Day,
Dunsil, Embry, Everett, Flanery, Gay, Greene, Griffin, Grigsby, Gul-
lette, Hahn, Hilton, C. S. Howard, Isler, Johnson, Melton, Morgan,
Newsom, Ratcliffe, J. B. Reed, V. Reed, H. V. Reid, R. Reid, Sr., Searcy,
Sloan, Stith, Thomas, Thompson, Tinsley, Wathen, Wirsch, Young,
Fitzpatrick.

Amendment to SB 2 was rejected.

Representative Morgan moved the Previous Question. Agreed.

On roll call, the vote was yeas 56—Bates, Billington, Blankenship,
Buchanan, Burnley, Bush, Carter, Casey, Conrad, Cottengim, Davis,
Day, Dunsil, Embry, Everett, Fitzpatrick, Flanery, Freeman, Gay,
Greene, Griffin, Grigsby, Gullette, Hahn, Harris, Heskamp, Hill, Hil-
ton, Hinkle, C. S. Howard, Isler, Jennings, Johnson, Martin, McFadden,
Melton, Moore, Morgan, Newsom, Parrish, Peace, Ratcliffe, Rayburn,
V. Reed, H. V. Reid, R. Reid, Sr., Searcy, Sloan, Stith, Thomas, Thomp-
son, Tinsley, Wathen, Wilson, Wirsch, Young. Nays 23—Baumgardner,
Blue, Breathitt, Breckinridge, Bridgers, Caudill, Cornett, Farmer, Hols-
claw, D. W. Howard, Lowman, Mackey, McCallum, McKinney, Mul-
lins, Murphy, Nunn, Ockerman, Ray, Saylor, Tanner, Walsh, A. W.
Wells,

SB 2 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

SB 5 taken from Orders of the Day on recommendation of the
Rules Committee. Representative Morgan moved that it be placed on
passage. Agreed.

Representative Newsom moved to amend SB 5 as follows:

Amend printed copy of SB 5 on page 2: by adding thereto imme-
diately following line 15, the following which shall constitute Section
2 thereof:

April 25 HOUSE OF REPRESENTATIVES 399

“Section 2. Section 158.110 of the Kentucky Revised Statutes is
amended to read as follows:

Boards of education shall furnish transportation from their general
funds or otherwise for pupils of elementary grade or high school grade
who do not reside within reasonable walking distance of the school
provided for them. No charge shall be made for such transportation.
The boards of education shall adopt such rules and regulations as
will insure the comfort, health and safety of the children who are
transported, consistent with the rules and regulations of the State Board
of Education dealing with the transportation of pupils.

A roll call was requested on amendment to SB 5.

On roll call, the vote was yeas 22—Blankenship, Blue, Burnley,
Carter, Cottengim, Davis, Dunsil, Everett, Flanery, Greene, Grigsby,
Isler, Johnson, McCallum, Melton, Morgan, Newsom, V. Reed, Sloan,
Thomas, Tinsley, Wathen. Nays 388—Baumgardner, Breckinridge, Bridg-
ers, Caudill, Conrad, Day, Farmer, Freeman, Gay, Griffin, Gullette,
Hadden, Highland, Hill, Hilton, Hinkle, Holsclaw, C. S. Howard,
D. W. Howard, Mackey, Martin, McKinney, Moore, Mullins, Murphy,
Nunn, Ockerman, Parrish, Peace, Ray, H. V. Reid, Thompson, Walsh,
A. W. Wells, L. B. Wells, Wilson, Wirsch, Young.

Amendment to SB 5 was rejected.

Representative Morgan moved the Previous Question. Agreed. _

On roll call, the vote was yeas 77—Bates, Baumgardner, Billington,
Blankenship, Blue, Breckinridge, Bridgers, Buchanan, Burnley, Carter,
Casey, Conrad, Cottengim, Davidson, Day, Dunsil, Embry, Farmer,
Flanery, Freeman, Gay, Greene, Griffin, Grigsby, Gullette, Hadden,
Hahn, Harris, Hawkins, Heskamp, Highland, Hill, Hilton, Hinkle,
Hislope, Holsclaw, C. S. Howard, D. W. Howard, Isler, Jennings,
Johnson, Kubale, Lowman, Mackey, Martin, McCallum, McFadden,
McKinney, Melton, Moore, Morgan, Mullins, Murphy, Newsom, Nunn,
Ockerman, Parrish, Peace, Ratcliffe, Ray, Rayburn, V. Reed, H. V.
Reid, R. Reid, Sr., Searcy, Sloan, Stith, Tanner, Thomas, Thompson,
Tinsley, Wathen, A. W. Wells, L. B. Wells, Wilson, Wirsch, Young.
Nays 0.

SB 5 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Buchanan moved that the House adjourn until
10:00 A.M., April 26, 1956. Agreed.

400 JOURNAL OF THE April 26

THURSDAY, APRIL 26, 1956
EIGHTEENTH LEGISLATIVE DAY

The House was called to order by Speaker Fitzpatrick.

Prayer by the Reverend Edward L. Tullis, of the First Methodist
Church, Frankfort.

The roll was called. All present except Anderson, Barnum, Be-
shear, Blue, Buchanan, Caudill, Dunsil, Grigsby, Gullette, Harris,
Hawkins, Hill, Hislope, Durham W. Howard, Kubale, Lambert, Martin,
Miller, Moore, Nunnelley, Pollitte, Rayburn, John B. Reed, Howard
V. Reid, Saylor, Tanner, Tinsley, and Williamson, who were granted
leaves of absence on motion of Representative Morgan.

Reading of the Journal for April 25, 1956, dispensed with and the
same approved on motion of Representative Isler.

Senate Message
Senate message announcing passage of HB 6, HB 9 with amend-
ment, HB 38, HR 3, HR 5, HR 6, and HR Il.

Report on Enrolled Bills
Committee on Enrollment reported that HB 6, HB 9 and HB 38
had been examined and found correctly enrolled. Said bills read at
length, compared and signed in open session by the Speaker. Ordered
delivered to Senate.

HB 6 and HB 38 delivered, signed by President of the Senate.
Ordered delivered to the Governor.

Representative Morgan moved that the House concur in the fol-
lowing Senate amendment to HB 9:

Amend printed copy of HB 9 on page 1 by amending the title
thereof by adding immediately following the word “prohibition.”, the
following:

“This Act shall be known as the Warinner-Bates Act.” Adopted.

Introduction of Resolutions
HR 16, by Representative Heyburn: A RESOLUTION adopting
an additional Rule to govern the proceedings of the House of Repre-
sentatives.

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky:

That the following Rule to be designated Rule 64, is hereby
adopted by the House of Representatives:

No article, booklet, pamphlet or any other printed matter shall be
placed upon the desk of any Member unless said article, booklet,
pamphlet or other printed matter contains the signature of the author,
or the party interested in the distribution thereof is clearly identified.

Representative Heyburn moved adoption of HR 16. Adopted.

April 26 HOUSE OF REPRESENTATIVES 401

HR 17, by Representative Heyburn: A RESOLUTION directing
the Legislative Research Commission to prepare and mail to each
Member of the House of Representatives, an itemized statement of the
expenditures of the House of Representatives.

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky:

That the Legislative Research Commission is directed to prepare
and mail to each Member of the House of Representatives, imme-
diately following the adjournment of the Fourth Extraordinary Session,
an itemized statement of all expenditures of the House during the
Regular Session and the First, Second, Third and Fourth Extraordinary
Sessions of 1956. Such statement shall contain the name, position and
compensation paid to each employe of the House of Representatives,
as well as all other expenditures of the House for the aforementioned
sessions.

Representative Heyburn moved adoption of HR 17. Rejected.

Representative Morgan moved that the House go into the Orders
of the Day.

Representative Breckinridge, seconded by Representative Free-
man, moved for a roll call on motion of Representative Morgan.

On roll call, the vote was yeas 37—Bates, Billington, Blankenship,
Burnley, Bush, Carter, Casey, Cottengim, Davidson, Davis, Day, Ever-
ett, Fitzpatrick, Flanery, Greene, Gullette, Harris, Hill, Hilton, C. S.
Howard, Isler, Johnson, Kubale, Melton, Morgan, Newsom, Qualls, V.
Reed, H. V. Reid, Reynolds, Stith, Thomas, Thompson, Wathen, Wein-
traub, L. B. Wells, Wirsch. Nays 32—Baumgardner, Breathitt,
Breckinridge, Bridgers, Farmer, Freeman, Gay, Griffin, Grundy,
Hadden, Heskamp, Heyburn, Holsclaw, Jennings, Lambert, Lowman,
Mackey, Martin, McCallum, McFadden, McKinney, Moore, Mullins,
Murphy, Nunn, Ockerman, Peace, Ray, R. Reid, Sr., Searcy, Tanner,
A. W. Wells.

Motion was adopted.

Orders of the Day

SB 7 taken from Orders of the Day on recommendation of Rules
Committee. Representative Morgan moved that it be placed on pas-
sage. Agreed.

Representative Holsclaw moved to amend SB 7 as follows:

Amend printed copy of SB 7 on page 3, section 2, lines 24 through
48; by striking out all of lines 24 through 48 and substituting in lieu
thereof the following:

1 $ 450.00 - 499.99 $ 8.00 $208.00
2 500.00 - 549,99 9.00 234.00
3 550.00 - 599.99 10.00 260.00
4 600.00 - 699.99 11.00 286.00
5 700.00 - 799.99 12.00 312.00

402 JOURNAL OF THE April 26

6 800.00 - 899.99 13.00 338.00

7 900.00 - 999.99 14.00 864.00

8 1,000.00 - 1,099.99 15.00 390.00

9 1,100:00 - 1,199.99 16.00 416.00
10 1,200.00 - 1,299.99 17.00 442.00
11 1,300.00 - 1,399.99 18.00 468.00
12 1,400.00 - 1,499.99 19.00 494.00
18 1,500.00 - 1,599.99 20.00 520.00
14 1,600.00 - 1,699.99 21.00 546.00
15 1,700.00 - 1,799.99 22.00 572.00
16 1,800.00 - 1,899.99 23.00 598.00
17 1,900.00 - 1,999.99 24.00 624.00
18 2,000.00 - 2,099.99 25.00 650.00
19 2,100.00 - 2,199.99 26.00 676.00
20 2,200.00 - 2,299.99 27.00 702.00
21 2,300.00 - 2,399.99 28.00 728.00
22 2,400.00 - 2,499.99 29.00 754.00
23 2,500.00 or over 30.00 780.00

On roll call, the vote was yeas 18—Breckinridge, Bridgers, Bu-
chanan, Griffin, Grundy, Hawkins, Heyburn, Holsclaw, Lambert,
Mackey, Ockerman, Ratcliffe, Ray, Sloan, A. W. Wells, L. B. Wells,
Wilson, Young. Nays 33—Bates, Baumgardner, Blankenship, Burnley,
Bush, Carter, Casey, Cottengim, Davidson, Day, Embry, Everett,
Flanery, Greene, Gullette, Highland, Hilton, C. S. Howard, Isler,
Johnson, Lowman, Melton, Morgan, Murphy, Peace, V. Reed, H. V.
Reid, Reynolds, Searcy, Thomas, Walsh, Weintraub, Wirsch.

Amendment was rejected.

Representative Holsclaw moved to amend SB 7 as follows:

Amend printed copy of SB 7 on page 1, section 1, line 12 and line
13 by striking out line 12 and line 18 and substituting in lieu thereof
the following:

“(5) He has earned a minimum of two hundred dollars during
each of two alternate quarters of his base-period and has base-period
wages of at least four hundred and fifty dollars; and”

Amendment was rejected, by voice vote.

SB 7 read at length for the third time. Representative Morgan
moved the Previous Question. Agreed.

On roll call, the vote was yeas 41—Bates, Baumgardner, Blanken-
ship, Burnley, Bush, Carter, Casey, Cottengim, Davidson, Davis, Day, -
Everett, Fitzpatrick, Flanery, Freeman, Greene, Gullette, Harris, Hill,
Hilton, Isler, Johnson, Kubale, Lowman, Martin, McCallum, Moore,
Morgan, Murphy, Newsom, Peace, Qualls, V. Reed, H. V. Reid, Rey-
nolds, Tanner, Thomas, Walsh, Weintraub, Wilson, Wirsch. Nays 34—
Billington, Breathitt, Bridgers, Conrad, Gay, Griffin, Grundy, Hadden,
Hahn, Hawkins, Heskamp, Heyburn, Highland, Hinkle, Holsclaw, C.
S. Howard, Lambert, Mackey, McFadden, McKinney, Melton, Nunn,

April 26 HOUSE OF REPRESENTATIVES 403

Ockerman, Parrish, Ratcliffe, Ray, Searcy, Sloan, Stith, Thompson,
Wathen, A. W. Wells, L. B. Wells, Young.

SB 7 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Report on Enrolled Bills

Committee on Enrollment reported that SB 2 and SB 5 had been
examined and found correctly enrolled. Said bills read at length,
compared and signed in open session by the Speaker. Ordered
delivered to the Senate.

Senate Message

Senate message announcing passage of SR 20. Read by Clerk.

Representative McCallum moved that the rules be suspended for
the purpose of introducing a Resolution. Agreed.

HR 18, by Representative McCallum: A RESOLUTION com-
mending Laban Jackson, Commissioner of Conservation.

WHEREAS, the Commissioner of Conservation, the Honorable
Laban Jackson, has announced a proposed plan for the construction of
a trail along Kentucky Lake; and

WHEREAS, such trail, if constructed, would make the scenic
wonders of Kentucky Lake more readily accessible to thousands of
Kentuckians and guests from out of the state; and

WHEREAS, Commissioner Jackson has announced that the State
will use convict labor if the trail is built; and

WHEREAS, the employment of convicts for such project will
afford them an opportunity to perform beneficial services for society,
and at the same time will prepare them to be more useful citizens; and

WHEREAS, Commissioner Jackson has shown a deep interest in
the State Parks and facilities,

NOW, THEREFORE,

Be it resolved by the House of Representatives of the General As-
sembly of the Commonwealth of Kentucky:

That the House of Representatives hereby commends the pro-
posed plan of Commissioner Laban Jackson to construct a trail along
Kentucky Lake, the employment of convicts to construct such trail and
his general approach in providing better State Parks for the citizens
of Kentucky and their guests.

Representative McCallum moved the adoption of HR 18. Adopted.

Representative Morgan moved the House adjourn until 10:00
A.M., April 27, 1956. Agreed.

404 JOURNAL OF THE April 27

FRIDAY, APRIL 27, 1956
NINETEENTH LEGISLATIVE DAY

The House was called to order by Representative Burnley.

Prayer by the Reverend Edward L. Tullis, of the First Methodist
Church, Frankfort.

The roll was called. All present except Barnum, Baumgardner,
Beshear, Breathitt, Caudill, Cornett, Dunsil, Embry, Gay, Grigsby,
Gullette, Hill, Hislope, Durham W. Howard, Isler, Jennings, Kubale,
Lambert, Lowman, McFadden, Melton, Miller, Moore, Newsom, Nunn,
Nunnelley, Parrish, Peace, Pollitte, Rayburn, John B. Reed, Reynolds,
Saylor, Tanner, Tinsley, Walsh, Wathen, Weintraub, and Williamson,
who were granted leaves of absence on motion of Representative
Morgan.

Reading of the Journal for April 26, 1956, dispensed with and
the same approved on motion of Representative Day.

Report on Enrolled Bill
Committee on Enrollment reported that SB 7 had been examined
and found correctly enrolled. Said bill read at length, compared, and
signed in open session by the Speaker. Ordered delivered to Senate.

Introduction of Resolution
HR 19, by Representative Hilton: A RESOLUTION concerning
desk name plates for the 1958 session of the General Assembly.

WHEREAS, the desk name plates provided for the 1956 session
of the General Assembly have proved most useful to the Speaker,
clerical staff, and gallery in identifying members of the House of Rep-
resentatives, and

WHEREAS, the utility of said name plates would be much en-
. hanced if the name of the member also appeared on the back of the
plate to facilitate identification by other members, pages delivering
communications, and persons seated in the rear of the gallery.

NOW, THEREFORE,

Be it resolved by the House of Representatives of the Common-
wealth of Kentucky:

The Legislative Research Commission is hereby directed to in-
vestigate the practicability of having the desk name plates procured
for the 1958 session of the General Assembly carry the name of the
member on both the front and back of the plates.

Representative Hilton moved adoption of HR 19. Adopted.

Senate Message

Senate message announcing passage of HR 4, HR 12, HR 15, HB
7 with amendment, and HB 24 with Committee substitute.

April 27 HOUSE OF REPRESENTATIVES 405

Representative Morgan moved that the House concur in Com-
mittee Substitute to HB 24, as follows:

Committee Substitute for HB 24: AN ACT relating to circuit
courts,

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. The introductory phrase and subsection (46) of Section
23.050 of the Kentucky Revised Statutes, as created by Senate Bill
#2, First Extraordinary Session of the 1956 General Assembly, are
amended to read as follows:

The regular term of each court shall commence in each county at
the following named time, and continue, if business requires it, the
number of days hereinafter prescribed:

* * % e *

(46) Breckinridge County at Hardinsburg on the first Monday
in January, for thirty juridical days; the first Monday in May, for
eighteen juridical days; the fourth Monday in August, for thirty juri-
dical days.

Grayson County at Leitchfield, on the second Monday in Feb-
ruary, for thirty juridical days; the fourth Monday in May, for eighteen
juridical days; first Monday in October, for thirty juridical days.

Section 2. The introductory phrase and subsection (27) of Section
283.050 of the Kentucky Revised Statutes are amended to read as fol-
lows:

The regular term of each court shall commence in each county
at the following named time, and continue, if business requires it, the

number of days hereinafter prescribed:
* pod

2 ® *

_ (27) Laurel County at London, the third Monday in February;
the third Monday in May; the third Monday in October, thirty juridical
days each.

Knox County at Barbourville, the Second Monday in January;
the second Monday in April; the second Monday in September, thirty
juridical days each.

Section 3. Whereas, it is necessary that the adjustment of terms
of court in the F orty-Sixth Judicial District is made at an early date,
an emergency is declared to exist and Section 1 of this Act shall become
effective upon passage and approval by the Governor. Section 2 of this
Act shall become effective on July 1, 1956.

Committee Substitute was agreed.

Representative Morgan moved the Previous Question. Agreed.

On roll call, the vote was yeas 64—Bates, Billington, Blankenship,

406 JOURNAL OF THE April 27

Blue, Breathitt, Breckinridge, Buchanan, Burnley, Bush, Carter, Casey,
Conrad, Cottengim, Davidson, Davis, Day, Dunsil, Farmer, Fitzpatrick,
Flanery, Freeman, Gay, Greene, Griffin, Grigsby, Grundy, Gullette,
Hadden, Hahn, Harris, Hawkins, Heskamp, Highland, Hill, Hilton,
Hinkle, Holsclaw, C. S. Howard, Jennings, Johnson, Mackey, Martin,
McCallum, McKinney, Morgan, Mullins, Murphy, Newsom, Nunn,
Ockerman, Qualls, Ratcliffe, V. Reed, H. V. Reid, R. Reid, Sr., Searcy,
Sloan, Stith, Thomas, Thompson, L. B. Wells, Wilson, Wirsch, Young.
Nays—0.

HB 24 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved that the House concur in the fol-
lowing Senate amendment to HB 7:

Amend printed copy of HB 7 on page 1, section 1, line 5, by strik-
ing therefrom the figure “$165,000” and inserting in lieu thereof the
figure “$107,000”, and further by striking therefrom the figure “$215,-
000” and inserting in lieu thereof the figure “$116,000”.

Adopted.

Representative Morgan moved the Previous Question. Agreed.

On roll call the vote was yeas 55—Bates, Billington, Blankenship,
Blue, Breathitt, Breckinridge, Buchanan, Burnley, Bush, Carter, Casey,
Conrad, Cottengim, Davis, Day, Farmer, Flanery, Freeman, Gay,
Greene, Grundy, Gullette, Hadden, Hahn, Harris, Hawkins, Heskamp,
Heyburn, Highland, Hilton, Hinkle, C. S. Howard, Jennings, Johnson,
Mackey, Martin, McCallum, McKinney, Morgan, Mullins, Newsom,
Ockerman, Qualls, Ratcliffe, V. Reed, H. V. Reid, R. Reid, Sr., Searcy,
Stith, Thompson, A. W. Wells, L. B. Wells, Wilson, Wirsch, Young.
Nays 0.

HB 7 was passed and the title agreed to.

Representative Morgan moved that the vote by which said bill
was passed be reconsidered and said motion be laid on the table.
Agreed.

Representative Morgan moved that the House do now recess for
15 minutes. Agreed.

At the appointed hour, the Speaker resumed the Chair and called
the House to order.
Senate Message

Senate message announcing passage of HB 3 with Committee

Substitute, HB 41, and HB 28, with amendment.

Report on Enrolled Bills

Committee on Enrollment reported that HB 7, HB 24, HB 41, and
HR 4 have been examined and found correctly enrolled. Said bills

April 27 HOUSE OF REPRESENTATIVES 407

read at length, compared, and signed in open session by the Speaker.
Ordered delivered to the Senate.

HB 7, HB 24, HB 41, and HR 4 delivered, signed by President of
the Senate. Ordered delivered to the Governor.

Representative Morgan moved that the House concur in Com-
mittee Substitute to HB 3, as follows:

HB 3: AN ACT relating to revenue and taxation and the recording
of deeds and conveyances.

Be it enacted by the General Assembly of the Commonwealth
of Kentucky:

Section 1. The grantee of every deed, bill of sale, or other in-
strument offered for record after January 1, 1957 which conveys any
real property or any interest in any real property in this state—except
such transfers exempted by this Act—shall file with the county clerk
an affidavit setting forth the following information: The name and
address of the grantor; the namfe and address of the grantee, a brief
description of the property transferred; its location by taxing jurisdic-
tion; the date of sale; the sale price, including an assumed mortgages
or liens, or the value of the property, whichever is greater. No deed or
instrument, not exempted by Section 3 of this Act, shall be admitted
to record without filing the required affidavit.

Section 2. The county clerk shall record upon the face of the
deed the fact that the affidavit was filed and also cause this fact to be
entered in the deed book and on the page wherein the deed is recorded.
In case the real estate transferred is located in more than one estan
in Kentucky, the affidavit shall be filed with the county clerk in whic
the deed is first offered for record. The instrument may then be re-
corded in the office of any other county court clerk without another

affidavit being filed.

Section 3. Deeds or instruments covering property which is ex-
empt to the grantee under Section 170 of the Kentucky constitution
shall be exempted from the filing of the affidavit. Deeds of correction
and quit claim deeds wherein no additional consideration is involved
shall also be exempt. Transfers between husband and wife and parents
and children shall be exempt.

Section 4. The county clerk shall collect the sum of fifty cents
from the grantee for preparing and for recording the affidavit and shall
record on each affidavit the deed book and page at which the instru-
ment is recorded. By the tenth of each month the county clerk shall
send the affidavits filed during the preceding month along with
twenty-five cents for each affidavit to the Department of Revenue.

Section 5. Any false statement made in the affidavit required by

408 JOURNAL OF THE April 27

Section 1 of this Act shall incur the penalty for false swearing under
the provision of KRS 432.170.

Section 6. Any county clerk who , willfully fails to record the
affidavits and forward them to the Department of Revenue shall be
fined not less than ten dollars nor more than one-hundred dollars.

Section 7. The Department of Revenue shall provide by rules
and regulations for the administration of this Act. .

Section 8. The information received by the county clerk shall
be deemed confidential information in. the same manner as information
received by the Department of Revenue.

Section 9. This Act shall become effective January 1, 1957.

Committee Substitute was rejected.

Representative Morgan moved that the House concur in Senate
Amendment to HB 23, as follows:

Amend printed copy of HB 28 on page 5, section 3, line 18: by
striking the word “then” and inserting in lieu thereof the word “their”

Agreed.

Representative Morgan moved that the House concur in Senate
Amendment to HB 23 as follows:

Amend printed copy of HB 28 on page 9; following Section 5
after line 114 a new section is added which shall be Section 6. Section
6 shall read as follows:

Section 6. (1) Any trading stamp not offered for redemption
within two years after its printed date of issue shall thereupon become
unclaimed property and all rights of the holder of such stamp shall
revert and belong to the Commonwealth of Kentucky and the holder
of such stamp shall not longer possess or have any rights under or by
reason of any such stamp.

(2) As used in this section “Trading Stamp” means and includes
any form of stamp, ticket, card, receipt or any similar device or devices,
that is either directly or indirectly issued, sold, given or otherwise fur-
nished or delivered by any person to any other person within the
Commonwealth of Kentucky in connection with or as part of the sale
and purchase of any goods, services, or out put of a service trade,
and which entitles the purchaser receiving the same with such sale
and purchase of goods or services, or the holder thereof, to procure
or otherwise receive from any person money, goods or anything of
value, free or without charge, upon the production or presentation of
any number or a stated number of said stamps as herein defined; but
an offer made or endorsed by the manufacturer from, as apart of, or
within the original wrapped package or container in which goods are
sold, of a premium or a reward for the return to the manufacturer of
such goods, or to any dealer in such goods, of all or any part of that
label or container, or any coupon placed in or attached to such label
or container, is not a trading stamp.

April 27 HOUSE OF REPRESENTATIVES 409

(3) In order to carry out and enforce the foregoing reversion and
escheat provisions:

(a) Each trading stamp issued, given, used, sold or otherwise
disposed of after the effective date of this Act shall have printed
legibly on its face the month and year of issue, provided no stamps
shall be sold bearing a date more than one month in advance from
month of sale.

(b) Each trading stamp issued, used, sold or otherwise dis-
tributed shall have printed legibly thereon the stated redeemable value
expressed in cents or fraction of cents, as the case may be, but such
value shall be not less than the actual value of such stamps as deter-
mined by the issuer.

(c) All books and other devices furnished for the collection of
trading stamps by holders thereof shall bear the following statement
in bold type thereon: “TRADING STAMPS ARE REDEEMABLE IN
PREMIUMS OR IN CASH AT THE STATED VALUE AT THE OP-
TION OF THE HOLDER, BUT ONLY IF OFFERED FOR RE-
DEMPTION WITHIN TWO YEARS OF THE PRINTED DATE OF
ISSUE.”

(d)’ Each issuer and each agent for redemption of trading
stamps shall make and maintain records of:

(1) The value of trading stamps so issued, given, used, sold, or
otherwise distributed by such person within this state.

(2) The date of their issue.

(3) The value of trading stamps redeemed by him within two
years after their date of issue, so that such records will disclose ac-
curately the total value of trading stamps so issued, given, used, sold
or otherwise distributed within this state which are not presented for
redemption or redeemed within two years after their date of issue.

(e) Any issuer by virtue of doing business in this state author-
izes the Department of Revenue to make or have made an audit of
the issuer's books and records to determine the amount and value of
unredeemed stamps that have been escheated to the Commonwealth
of Kentucky under the provisions hereof.

Amendment was rejected.

A Committee consisting of Representatives Holsclaw, Burnley,
and Day was appointed to inform the Senate that the House had failed
to concur in Committee Substitute to HB 3 and Senate Amendment
No. 2 to HB 28.

Representative Morgan moved that the vote by which Senate
Amendment No. 2 to HB 28 was rejected be reconsidered. Agreed.

On roll call, the vote was yeas 39—Billington, Blue, Breathitt,
Breckinridge, Bridgers, Bush, Casey, Conrad, Farmer, Fitzpatrick,
Flanery, Freeman, Gullette, Hadden, Hahn, Hawkins, Heskamp, Hey-
burn, Hilton, Hinkle, Johnson, Kubale, Lambert, Mackey, Martin,
McCallum, Moore, Morgan, Mullins, Newsom, Ockerman, Ray, H. V.

410 JOURNAL OF THE April 27

Reid, R. Reid, Sr., Searcy, Thompson, A. W. Wells, Wilson, Young.
Nays 0.

Representative Morgan moved that the vote by which the said
bill was lost be reconsidered and said motion be laid on the table.
Agreed.

Committee to Wait on Governor

The Speaker appointed the following committee: Representatives
Johnson, Howard V. Reid, Day, Everett, and Bates.

Representative Johnson, on behalf of the Committee, reported that
the Governor had been informed of the message from the House and
the Governor consented to the adjournment of this Extraordinary
Session.

Representative Day moved that the House adjourn sine die.
Agreed.

The Journal of the House has been read, compared and approved.

The House adjourned sine die.

APPROVED:

(Signed) THOMAS P. FITZPATRICK, Speaker
ATTEST:
(Signed) JAMES C. CUBBAGE, Chief Clerk

INDEX

FIRST EXTRAORDINARY SESSION

Page

History of Bills and Resolutions _---.___---_______ ii

General Index ________________o___ x
SECOND EXTRAORDINARY SESSION _

History of Bills and Resolutions ________.__________ xiv

General Index __________-_______-_-__ Xxii
THIRD EXTRAORDINARY SESSION

History of Bills and Resolutions ____---___________. xxvi

General Index ______.___________________ XXxii
FOURTH EXTRAORDINARY SESSION

History of Bills and Resolutions _-_____--._________ XXXVi

General Index

INDEX, FIRST EXTRAORDINARY SESSION
HISTORY OF HOUSE BILLS

Numbers refer to page of House Journal. Text of bill is given on

first reading. Names of sponsors are in parentheses.

HB 1 Reorganizing state administrative agencies and depart-
ments (Morgan).

HB 2 Authorizing county merit systems for county with second
class city (Breckinridge).

HB 8_ Providing for secret ballot election of party precinct
committeemen (Breckinridge).

HB 4 Extending scope of safety requirements for stopped school
bus (Breckinridge).

HB 5. Extending citizens’ groups representation in conduct of
elections (Breckinridge).

HB 6 Permitting election recounts in counties as designated by
candidate (Breckinridge).

HB 7 Requiring prompt election counts (Breckinridge).

HB 8 Authorizing agreements respecting expenditure of rural
and secondary road funds (Breckinridge).

HB 9 Changing appointments to and powers of county children’s
bureaus (Breckinridge).

Intro-
duced

HISTORY OF HOUSE BiLLS

Reported

Readings
Ist 2nd 3rd

12 50 51

Senate
Message

Other
Enrolled Action

iii

iv INDEX
HISTORY OF HOUSE RESOLUTIONS

Numbers refer to page of House Journal. Text of resolution is
given on first reading or adoption. Joint resolutions are designated
HJR; concurrent resolutions are designated HCR.

HR 1 Adopting permanent rules (Morgan).

HR 2 Authorizing a committee to inform the Senate and the
Governor that the House is organized (Morgan).

HISTORY OF HOUSE RESOLUTIONS

Intro- Readings Senate

duced Reported Ist 2nd 3rd Adopted Message Enrolled
5 5
5 5

Other
Action

vi INDEX
HISTORY OF SENATE BILLS

Numbers refer to page of House Journal. Text of bill is given on
first reading.

SB 1 Increasing membership of board of control for Southern
Regional Education Compact.

SB 2 Creating forty-sixth judicial district.

SB 8 Authorizing county-wide health department in county with
first class city.

SB 4 Authorizing county-wide welfare department in county
with first class city.

SB 5. Providing for governmental organization of second class
cities.

SB 6 Changing the State Board of Election Commissioners.

SB 7 Providing for filing of administrative regulations.

SB
SB

HISTORY OF SENATE BILLS

Senate
Message

55
55

55
68

Reported

55
55

Ist
52

55
58

64
69

Readings
st 2nd

68
68

68
71

3rd

71
76

77
75

76
75

Enrolled

78
78

vii

Other
Action

73, 74

viii INDEX
HISTORY OF SENATE RESOLUTIONS
Numbers refer to page of House Journal. Text of resolution is

given on first reading or adoption. Joint resolutions are designated
SJR; concurrent resolutions are designated SCR.

SJR 3 Approving entry of Delaware and West Virginia into the
Southern Regional Education Compact.

SCR 4 _ Endorsing candidacy of Wendell Ford for president of
U. S. Junior Chamber of Commerce.

SCR
SJR 7 Providing for sine die adjournment on March 8.

Endorsing Southern Fire Prevention Conference.

SR
SR

HISTORY OF SENATE RESOLUTIONS ix

Senate
Message Reported

51 52
51 52
71
75

Readings
Ist 2nd 3rd

53 68 71

53 68

Other
Adopted Enrolled Action

78
71
71 78
78

x GENERAL INDEX, FIRST EXTRAORDINARY SESSION

Adjournment
sine die, SR 7

Administrative regulations
supervision of compilation of, SB 7

Agricultural and Industrial Development Board
transferring functions to new department, HB 1

Auditor of Public Accounts
personnel, authorizing hiring of and setting qualifications for, HB 1

Blind
training and employment of, HB 1

Board of Claims
members of, hiring of personnel, HB 1

Breckinridge, John B.
Introduced: HB 2, 3, 4, 5, 6, 7, 8, 9

Circuit courts
judicial districts, changing, SB 2
terms of court, changing, SB 2

Cities, first class
health department, authorizing on a county-wide basis, SB 3
welfare department, authorizing on a county-wide basis, SB 4

Cities, second class
government organization, providing for, SB 5

Compensation of public officers
state officers and employees generally, HB 1

Conservation, Department of
administrative organization of department, HB 1
publicity, transferring functions to new department, HB 1
Soil and Water Resources Commission, appointing of members and
director, HB 1
strip mining functions, transferring to department, HB 1

Constitution Review Commission -
transferring functions to Legislative Research Commission, HB 1

Counties
boards of registration and purgation, composition, meetings, duties,
removal, SB 6
childrens’ bureaus, appointment of members to, HB 9
merit system for employees, county with second class city, HB 2

Counties containing first class city
health department, authorizing on county-wide basis, SB 3
welfare department, authorizing on county-wide basis, SB 4

Depositories, state
designation of, HB 1

Economic Development, Department of
creating, defining powers and organization of; succeeds to Agricultural
and Industrial Development Board, HB 1

Education
blind, training and employment program for, HB 1
Council on Public Higher Education, powers relating to regional com-
pacts and medical education, HB 1
pecuniary interest in expenditures, prohibiting, HB 1
school bus, requiring vehicles to stop for when stationary, HB 4
school busses, purchasing of, HB 1

GENERAL INDEX, FIRST EXTRAORDINARY SESSION xi

school districts, election of board members, HB 1

Southern Regional Education Compact, approving admission of Dela-
ware and West Virginia, SR 3

Southern Regional Education Compact, increasing membership of board
of control, SB 1

state colleges, boards of regents for, HB 1

State Department of Education, organization of, HB 1

teacher training, program for, HB 1

Elections

canvassing of returns, requiring prompt completion, HB 7

challengers, providing of by citizen groups, HB 5

contests, filing of petitions for, SB 6

county registration and purgation boards, compensation, meetings,
duties, removal, SB 6

party precinct committeemen, providing for secret election, HB 3

recount, allowing designation of counties for, HB 6

school boards, HB 1

Pie peer of Election Commissioners, reorganization and powers of,
S

Finance, Department of
administrative organization, and powers of, HB 1
personnel functions, transferring to new department, HB 1
school busses, purchasing of, HB 1
state property and buildings, powers relating to, HB il

Fire prevention and protection
Southern fire prevention conference, supporting, SR 5
state fire marshal, transferring functions to Department of Public
Safety, HB 1

Fiscal court
merit system, authorizing in county with second class city, HB 2
rural and secondary roads, state maintenance of, HB
welfare department, establishing in county with first class city, SB 4

Ford, Wendell
ener ne for President of United States Junior Chamber of Commerce,
4

General Assembly
adjournment, SR 7
adopting permanent rules, HR 1
committee to notify House and Governor of organization, HR 2, p. 5
rules committee, appointment of, p. 5
Southern regional education, specifying legislative representation on
board of control, SB 1

Governor
address to General Assembly, p. 6
appointment of heads of newly created departments and agencies, HB 1
committee to wait on, pp. 5, 78
compensation of state officers and employees, setting scale of, HB 1
proclamation convening session, p. 4
State Board of Election Commissioners, appointment of members, SB 6

Health
Sd department, authorizing in county with first class city,

Highways, Department of
rural and secondary roads, state maintenance of, HB 8
State Highway Commission, creating, HB 1

Insurance, Department of
fire loss functions, transferring to Department of Public Safety, HB 1

xii GENERAL INDEX, FIRST EXTRAORDINARY SESSION

Legislative Research Commission
administrative regulations, supervision of filing of, SB 7
chairman of; transferring constitutional review functions to, HB 1

Morgan, Fred H.
Introduced: HB 1; HR 1, 2

Motor vehicles ;
operators’ licensing functions, transferring to Department of Public
Safety, HB 1
stopping for school bus, extending requirements, HB 4

Personnel, Department of
compensation of state officers and employees, HB 1
establishing of, powers and duties, HB 1

Police, state
functions, transferring to Department of Public Safety, HB 1

Political parties
challengers, providing of by citizen groups, HB 5
election commissioners, certification of nominees, SB 6
secret ballot election, providing for precinct committeemen, HB 3

Property and Buildings Commission, State
functions, transferring to Department of Finance, HB 1

Public officers and employees
compensation, state officers and employees, HB 1
merit system, authorizing in county with second class city, HB 2
school officers and employees, prohibiting pecuniary interest in ex-
penditures, HB 1

Public Relations, Department of
creating, defining powers of, HB 1

Public Safety, Department of ; :
creating, defining powers and organization of, transferring functions

to, HB 1

Reorganization
state departments and agencies, HB 1

Retirement system, state
board of trustees for, powers of, HB 1

Revenue, Department of .
operators’ licensing and responsibility functions, transferring to De-
partment of Public Safety, HB 1 :

Revenue bonds
issuing by state agencies, HB 1

Rules of House
adopted, p. 5

Secretary of State
administrative regulations, filing certified copy of, SB 7
election contests, filing of petitions, SB 6
proclamation of Governor, certification of, p. 3
State Board of Election Commissioners, member of, SB 6

State agencies
administrative regulations, filing of, SB 7
departments and agencies, listing of, HB 1

Strip mining
ac aye functions, transferring to Department of Conservation,

GENERAL INDEX, FIRST EXTRAORDINARY SESSION xiii

Universities and colleges
Council on Public Higher Education, powers of, HB 1
state colleges, boards of regents for, HB 1

Welfare
county children’s bureaus, appointment of members to, HB 9
department of, establishing in county with first class city, SB 4

Welfare, Department of
farm management, creating division and advisory board of, HB 1

INDEX, SECOND EXTRAORDINARY SESSION
HISTORY OF HOUSE BILLS

Numbers refer to page of House Journal. Text of bill is given
on first reading. Names of sponsors are in parentheses.

HB 1 Providing for registration of heavy motor vehicles (Mor-
gan).

HB 2 Providing for registration of trailers, semi-trailers and
house trailers (Morgan).

HB 3 Providing for licensing of motor carriers and issuing of
certificates and permits (Morgan).

HB 4 Reducing deductions of gasoline dealers (Morgan).

HB 5_ Extending scope of safety requirements for stopped school
bus (Breckinridge).

HB 6 Authorizing agreements respecting expenditure of rural
and secondary road funds (Breckinridge).

HB 7 Providing for licensing of power cycles (Burnley, Harris).

HB 8 _ Imposing a surtax on fuel used by heavy motor vehicles
(Morgan).

HB 9. Prohibiting operation of trucks over 21,000 pounds except
on designated highways (Sloan).

HB
HB

Intro-
duced

91
91

110
111

156

HISTORY OF HOUSE BILLS

Readings
Reported Ist 2nd 3rd

lll

91 111 188

96 111 150

98 111 151

108 111 130

111 180 135

Senate
Message Enrolled

163 165
163 165
163 167
154 156
163 164

Other
Action

164

150, 163

151, 165, 166

xvi

INDEX

HISTORY OF HOUSE RESOLUTIONS

Numbers refer to page of House Journal. Text of resolution is
given on first reading or adoption. Joint resolutions are designated
HJR; concurrent resolutions are designated HCR.

HCR

HJR

HCR

Adopting permanent rules (Morgan).

Authorizing committee to inform the Senate and the Gov-
ernor that the House is organized (Morgan).

Making an appropriation to the Legislative Session Fund
(Morgan).

Commending the Morehead State College basketball team
(Flanery, Lowman, Hinkle, Greene, Mackey).

Directing a study for a highway across Markland Dam
(Day).

Requesting tickets to be made available for high school
basketball tournament (Melton, Qualls, Carter, Thomas,
Conrad, Greene, Hilton, Burnley, Caudill, Rayburn,
Bush).

Commending the Carr Creek high school basketball team
(Cornett).

Directing a study of gasoline marketing (Morgan).
Approving proposed dam on Kentucky River at Buckhorn
(Gay).

Expressing sympathy to Representative Morris Weintraub
(Isler).

Expressing condolences to assistant clerk Brooks Hargrove
(Holsclaw).

Petitioning Congress to construct the Upper Cumberland
River Dam (Burnley, Morgan, Davis, Breathitt, Nunn,
Hahn, H. V. Reid, Billington, Young, Johnson, Hadden,
Harris).

Directing a study for a highway across Greenup Dam
(Hilton).

Commending the University of Louisville basketball team
(Holsclaw, Heyburn, Baumgardner, Ray, Barnum, Walsh,
Murphy, Bridgers, Farmer, Anderson, Miller).
Petitioning Congress to complete the proposed Falmouth
Dam Project (Wirsch).

Commending the Louisville Central high school basket-
ball team (Anderson, Heyburn, Walsh, Miller, Baumgard-
ner, Ray, Qualls, Holsclaw, Bridgers, Barnum).

HCR

HJR

HCR

HISTORY OF HOUSE RESOLUTIONS

Intro-
duced

83
83

132

135
136

139

140

149

154

155

161

M11

141

110 111 180

128 180 138

141 143 152

83
84

129

183

136

189

139

14)

150

155

162

143

163

164

143

164

165

Readings Senate
Reported Ist 2nd 3rd Adopted Message Enrolled

149

xvii

Other
Action

187, 163

156

xviii INDEX
HISTORY OF SENATE BILLS

Numbers refer to page of House Journal. Text of bill is given on
first reading.

SB 1 Increasing maximum truck and trailer dimensions.

SB 2 _ Requiring eradication of Johnson grass on rights of way.
SB 8 Providing for a $100,000,000 highway bond issue.

SB 4 Changing procedures and requirements relating to state

construction and maintenance of rural and secondary roads.

SB
SB
SB
SB

m oF bo

Senate
Message

132
136
148
143

HISTORY OF SENATE BILLS

Reported
133

137
143
143

1st

133
137
143
147

Readings
136
142
152
152

3rd
142

153
159
161

Enrolled

143
163
163
163

xix

Other
Action

152
157, 159
159

XxX INDEX
HISTORY OF SENATE RESOLUTIONS

Numbers refer to page of House Journal. Text of resolution is
given on first reading or adoption. Joint resolutions are designated
SJR; concurrent resolutions are designated SCR.

SCR 8 Directing a study of allocation of funds for rural and sec-
ondary roads.

SJR 10 Commending the University of Louisville basketball team.
SCR 12 _ Providing for sine die adjournment on March 28.

HISTORY OF SENATE RESOLUTIONS xxi

Senate Readings Other
Message Reported Ist 2nd 3rd Adopted Enrolled Action
SR 8 154 157
SR 10 154 156

SR 12 166 167

xxii GENERAL INDEX, SECOND EXTRAORDINARY SESSION

Adjournment
sine die, SR 12

Anderson, Felix
Introduced: HR 14, 16

Appropriations
Legislative Session Fund, HR 3

Barnum, Clarence J.
Introduced: HR 14, 16

Baumgardner, Charles E., Sr.
Introduced: HR 14, 16

Billington, Owen
Introduced: HR 12

Bonds
highway bonds, providing for $100,000,000 issue, SB 3

Breathitt, Edward T., Jr.
Introduced: HR 12

Breckinridge, John B.
Introduced: HB 5, 6

Bridgers, Edward O.
Introduced: HR 14, 16

Burnley, Charles W.
Introduced: HB 7; HR 6, 12

Bush, Floyd
Introduced: HR 6

Carter, Earl
Introduced: HR 6

Caudill, Harry M.
Introduced: HR 6

Commendation, appreciation, sympathy, resolutions and motions of
Brooks Hargrove, assistant House clerk, HR 11
Carr Creek high school basketball team, HR 7
First Congressional District members, for breakfast, p. 141
Louisville Central high school basketball team, HR 16
Morehead College basketball team, HR 4
Representative Morris Weintraub, HR 10
University of Louisville basketball team, HR 14; SR 10

Conrad, Charles L.
Introduced: HR 6

Cornett, Bill
Introduced: HR 7

County clerk
trailers, registration of, HB 2

Dams
Falmouth dam, requesting Congress to complete, HR 15
highway across Greenup dam, directing study of, HR 13
highway across Markland dam, directing study of, HR 5
Aeouteey River dam at Buckhorn, approving federal construction of,
R 9 ;

Upper Cumberland River dam, petitioning Congress to construct, HAR 12

Davis, Roy C.
Introduced: HR 12

GENERAL INDEX, SECOND EXTRAORDINARY SESSION xxiii

Day, John L.
Introduced: HR 5

Elections
highway bond issue, approving at 1956 election, SB 3

Farmer, John W.
Introduced: HR 14

Fiscal court
monde enneine procedure for state construction and maintenance, HB
; 4

Flanery, W. J.
Introduced: HR 4

Gasoline
dealers, reducing tax deductions, HB 4
marketing, directing study of, HR 8

Gay, Clay
Introduced: HR 9

General Assembly
adjournment, SR 12
adopting permanent rules, HR 1
Assistant Clerk Brooks Hargrove, expressing condolences to, HR 11
committee to notify Senate and Governor of organization, HR 2, p. 84
conference committee on HB 3, p. 165
Legislative Session Fund, making appropriation to, HR 3
Representative Morris Weintraub, expressing sympathy to, HR 10
state high school basketball tournament, requesting tickets for, HR 6

Governor
address to General Assembly, p. 84
committee to wait on, pp. 84, 167
proclamation convening session, p. 82

Greene, John W.
Introduced: HR 4, 6

Hadden, W. L.
Introduced: HR 12

Hahn, James P.
Introduced: HR 12

Harris, George F.
Introduced: HB 7; HR 12

Heyburn, Henry R.
Introduced: HR 14, 16

Highways ;
bonds for construction, providing for $100,000,000 issue, SB 3
heavy vehicles, use of highways by, HB 9; SB 1

Highways, Department of
Greenup dam, directing study for highway across, HR 13
heavy vehicles, designating use of highways by, HB 9; SB 1
Johnson grass, requiring eradication along rights of way, SB 2
Markland dam, directing study for highway across, HR 5 4
rural and secondary roads, changing procedure for state assumption
of, HB 6; SB 4

Hilton, E. R.
Introduced: HR 6, 13

Hinkle, Brooks
Introduced: HR 4

xxiv GENERAL INDEX, SECOND EXTRAORDINARY SESSION

Holselaw, Chester J.
Introduced: HR 11, 14, 16

Insurance s
motor carriers, specifying coverage, HB 3

Isler, John J.
Introduced: HR 10

Johnson, Jack
Introduced: HR 12

Legislative Research Commission
studies directed:
allocation of funds for rural and secondary roads, SR 8
gasoline marketing, HR 8

Lowman, Harry King
Introduced: HR 4

Mackey, True
Introduced: HR 4

Melton, Carl D.
Introduced: HR 6

Miller, Clarence R.
Introduced: HR 14, 16

Morgan, Fred H.
Introduced: HB 1, 2, 3, 4, 8; HR 1, 2, 3, 8, 12

Motor carriers | he ; ; a
licensing, issuing of certificates and permits, insurance, providing for,
HB 3

Motor Transportation, Department of ;
carriers, providing for issuing of certificates and permits, HB 3

Motor vehicles
fuel, imposing surtax on use by heavy vehicles, HB 8
heavy trucks, restricting road use by, HB 9.
heavy vehicles, providing for registration of, HB 1
power cycles, providing for licensing of, HB 7
stopping requirements, while passing stationary school bus, HB 5
trailers, providing for registration of, HB 2
truck and trailer dimensions, increasing maximum, SB 1

Murphy, Thomas J.
Introduced: HR 14

Nunn, Joe E.
Introduced: HR 12

Petitions and memorials
to Congress for:
dam on Upper Cumberland River, HR 12
Falmouth dam, HR 15
Kentucky River dam at Buckhorn, HR 9

Proclamation of Governor
subjects embraced, p. 82

Qualls, Roger E.
Introduced: HR 6, 16

Ray, Thomas L.
Introduced: HR 14, 16

Rayburn, Hobart
Introduced: HR 6

GENERAL INDEX, SECOND EXTRAORDINARY SESSION xxv

Reid, Howard V.
Introduced: HR 12

Revenue, Department of
fuel used by heavy vehicles, administration of surtax on, HB 8
trailers, providing for administration of registration, HB 2

Rules, House
adopted, p. 83

Rural and secondary roads
allocation of state funds, directing study of, SR 8
state assumption of construction and maintenance, changing procedure
for, HB 6; SB 4

Secretary of State
proclamation of Governor, certification of, p. 81

Sloan, Hansford
Introduced: HB 9

Taxation and revenue
gasoline dealers, reducing tax deductions for losses, HB 4
heavy motor vehicles, providing for registration of, HB 1
highway bond issue, use of revenue from, SB 3
motor carriers, setting fees and licenses, HB 3
motor fuels, imposing surtax on use in heavy vehicles, HB 8
power cycles, providing for licensing of, HB 7
trailers, providing for registration of, HB 2

Thomas, Ed
Introduced: HR 6

Trade practices
gasoline marketing, directing study of, HR 8

Trucks and trailers
fuel used by heavy vehicles, imposing surtax on, HB 8
heavy vehicles, registration of, HB I
registration of all trailers, providing for, HB 1
weight and other dimensions, increasing maximum, SB 1

Walsh, Eulick
Introduced: HR 14, 16

Wirsch, Charles W.
Introduced: HR 15

Young, Paul E.
Introduced: HR 12

INDEX, THIRD EXTRAORDINARY SESSION
HISTORY OF HOUSE BILLS

Numbers refer to page of House Journal. Text of bill is given
on first reading. Names of sponsors are in parentheses.

HB 1 Administration budget bill (Morgan).

HB 2 Making an appropriation for county election costs (Con-
rad, Thomas, Anderson, Hawkins, A. W. Wells, Wilson,
Melton, Gay, L. B. Wells, Saylor, Peace, Flanery, Hinkle,
Moore, Blankenship, Sloan, Mackey, Parrish, Burnley,
Miller, Hilton, Griffin, Dunsil, McKinney, Vernon Reed,
Young, Pollitte, Hislope, Bush, Highland, Robert Reid, Sr.).

HISTORY OF HOUSE BILLS xxvii

Intro- Readings Senate Other
duced Reported 1st 2nd 3rd Message Enrolled Action

HB 1 182 183 183 218 220 226 235 220, 226

XXVili INDEX
HISTORY OF HOUSE RESOLUTIONS

Numbers refer to page of House Journal. Text of resolution is
given on first reading or adoption. Joint resolutions are designated
HJR; concurrent resolutions are designated HCR.

HR 1 Adopting permanent rules (Morgan).

HR 2 Authorizing a committee to inform the Senate and the
Governor that the House is organized (Morgan).

HR 8 Adjourning on March 29 in memory of Otto A. Rothert
(Hahn).

HCR 4 Directing reimbursement of members of joint committees
on welfare and insurance investigation (Morgan).

HR 5. Favoring full implementation of the foundation program
for education (Buchanan, Hislope).

HR 6 _ Urging Department of Conservation to continue present
policy regarding swimming areas (McCallum, Billington).

HR 7 Memorializing Congress to proceed with proposed Fal-
mouth Dam Project (Wirsch, Tinsley, Conrad, Isler, Cot-
tengim, Weintraub, Thomas).

HISTORY OF HOUSE RESOLUTIONS

Intro-
duced

172
173

181

183

219

224

Reported

183

Readings
Ist 2nd 3rd

215 218 221

Senate

xxix

ther

Ae)
Adopted Message Enrolled Action

173
173

181

220

226

219

XXX INDEX
HISTORY OF SENATE RESOLUTIONS

Numbers refer to page of House Journal. Text of resolution is
given on first reading or adoption. Joint resolutions are designated
SJR; concurrent resolutions are designated SCR.

SCR 4 Petitioning Congress to consider rebating taxes to the
states.

SCR 5 Making an appropriation for the executive mansion.

SJR 6 Making an appropriation for county election costs.

SJR 7 Directing a study of a training school for crippled children.
SCR 12 Providing for sine die adjournment on April 6.

SR
SR
SR
SR

Message
4 299
222
6 222
217
12 226

HISTORY OF SENATE RESOLUTIONS XXxi

Senate

Reported

222
222

Readings
2nd

1st 3rd

222 224 225
222 224 226

Other
Adopted Enrolled Action

236

236 225
217
235

xxxii GENERAL INDEX, THIRD EXTRAORDINARY SESSION

Adjournment
Rothert, Otto A., in memory of, HR 3
sine die, SR 12

Anderson, Felix S.
Introduced: HB 2

Appropriations
elections, for state share of, HB 2; SR 6
executive budget, making biennial appropriations, HB 1
executive mansion, for repair of, SR 5
foundation pregram, favoring full implementation of, HR 5

Billington, Owen
Introduced: HR 6

Blankenship, R. B.
Introduced: HB 2

Buchanan, C. W.
Introduced: HR 5

Budget bill
executive budget, biennial, HB 1
foundation program, favoring full implementation of, HR 5
hearings on, motion for, p. 182

Burnley, Charles W.
Introduced: HB 2

Bush, Floyd
Introduced: HB 2

Children
crippled, directing study of school for, SR 7

Committees, General Assembly
insurance investigating committee, filing of report of, p. 227
joint investigating committees, expressing appreciation to, providing
for reimbursement of members, HR 4

Conrad, Charles L.
Introduced: HB 2; HR 7

Conservation, Department of
swimming areas, urging continuance of present policy in regard to
use of, HR 6

Cottengim, Vernor
Introduced: HR 7

Counties
elections, making appropriations for, HB 2; SR 6

Dams
Falmouth dam, petitioning Congress to complete project, HR 7

Dunsil, John
Introduced: HB 2

Elections
expenses, making appropriation for, HB 2; SR 6

Flanery, W. J.
Introduced: HB 2

Gay, Clay
Introduced: HB 2

GENERAL INDEX, THIRD EXTRAORDINARY SESSION xxxiii

General Assembly
adjournment, SR 12
adopting permanent rules, HR 1
committee to notify Senate and Governor of organization, HR 2
insurance investigating committee, report of, p. 227

Governor
address to General Assembly, p. 173
committee to wait on, pp. 173, 236
executive mansion, making appropriation for, SR 5
proclamation convening session, p. 172

Griffin, R. S.
Introduced: HB 2

Hahn, James P.
Introduced: HR 3

Hawkins, Emmett
Introduced: HB 2

Highland, Charles D.
Introduced: HB 2

Hilton, E. R.
Introduced: HB 2

Hinkle, Brooks
Introduced: HB 2

Hislope, Leonard
Introduced: HB 2; HR 5

Isler, John J.
Introduced: HR 7

Legislative Research Commission
joint investigating committees, reimbursing of members, HR 4
studies directed:
crippled children, training school for, SR 7

Mackey, True :
Introduced: HB 2

McCallum, Shelby
Introduced: HR 6

McKinney, Pearl
Introduced: HB 2

Melton, Carl D.
Introduced: HB 2

Miller, Clarence R.
Introduced: HB 2

Moore, Alton
Introduced: HB 2

Morgan, Fred
Introduced: HB 1; HR 1, 2, 4

Parrish, Jerry
Introduced: HB 2

Peace, Will K.
Introduced: HB 2

Petitions and memorials
to Congress for:
Falmouth dam, HR 7
rebate of taxes collected in state, SR 4

xxxiv GENERAL INDEX, THIRD EXTRAORDINARY SESSION
Pollitte, E. D.
Introduced: HB 2

Proclamation of Governor
subjects embraced, p. 172

Reed, Vernon
Introduced: HB 2

Reid, Robert, Sr.
Introduced: HB 2

Rules, House
adopted, p. 173

Saylor, LeRoy
Introduced: HB 2

Secretary of State
proclamation of Governor, certification of, p. 171

Sloan, Hansford
Introduced: HB 2

Thomas, Ed
Introduced: HB 2; HR 7

Tinsley, T. Herbert
Introduced: HR 7

Wells, A. W.
Introduced: HB 2

Wells, L. B.
Introduced: HB 2

Weintraub, Morris
Introduced: HR 7

Wilson, Mrs. Randolph
Introduced: HB 2

Wirsch, Charles W.
Introduced: HR 7

Young, Paul E.
Introduced: HB 2

HB
HB

INDEX, FOURTH EXTRAORDINAY SESSION

HISTORY OF HOUSE BILLS

Numbers refer to page of House Journal. Text of bill is given on
first reading. Names of sponsors are in parentheses.

OU Oo

Increasing individual and corporation income taxes, de-
creasing credits, changing definitions, imposing surtax
(Morgan).

Transferring to the Department of Revenue the admin-
istration of taxes on intangible property and increasing
the tax rate (Morgan).

Levying a tax on deeds (Morgan).

Imposing a license tax on trading stamps (Morgan).
Restricting annexation of unincorporated areas having an
industrial plant (Morgan).

Providing for deposits to credit of Unemployment Insur-
ance Fund (Morgan).

Making an appropriation to the Department of Revenue
(Morgan).

Extending the pari-mutuel tax to non-profit race tracks
(Caudill, Martin, Bridgers, Mackey, Hadden, Hahn, Thom-
as, Breathitt, Griffin, Heyburn, Murphy, Saylor, Nunn,
McFadden, McKinney, Barnum, Cornett, Williamson,
Peace, Jennings, Reynolds, Buchanan, Miller, Robert Reid,
Sr., Dunsil, Freeman, Highland, Hislope, Durham W.
Howard, Lambert, Sloan, A. W. Wells, Pollitte, McCallum,
Wilson, Ratcliffe, Mullins, Casey, Wirsch, Lowman,
Embry).

Vesting title to contraband alcoholic beverages (Bates).
Increasing the pari-mutuel tax and extending the tax to
non-profit tracks (Grigsby).

Imposing a 3 percent retail sales tax and adjusting the
income tax (Freeman).

Imposing a 3 percent tax on meals, lodgings and rentals
(Cottengim).

Imposing a gross income tax and repealing inheritance,
estate and income taxes; adjusting rates of selective sales
taxes (Cottengim).

Imposing a tax on billiard balls (Davidson).

Decreasing distilled spirits production tax (Cottengim).

Requiring publication of annexation ordinances of sixth
class cities (Day).

Levying a tax on transient lodgings (Caudill).

Increasing the pari-mutuel tax (Hilton).

7) Nee)

Intro-
duced

254

255
255

255
255
255
255
296
296

296
296

HISTORY OF HOUSE BILLS

Reported

255

255
297
297
350

297

807

Ist

255

283

293
297
800
350

801

Readings
2nd

296

296
805
805
360

805

3rd
349

357

380

875

3802 305 374

308

820

Senate

Message

387

406

400

XXXVii

Other
Enrolled Action

389 3805, 333,
348, 388
357

400
406 406
304
400 400

XXXViili

HB 19
HB 20
HB 21
HB 22
HB 28
HB 24
HB 25
HB 26
HB 27
HB 28
HB 29
HB 30
HB 31
HB 32
HB 33
HB 34
HB 35
HB 36
HB 37
HB 38
HB 39
HB 40
HB 4i1
HB 42
HB 48

INDEX
HISTORY OF HOUSE BILLS

Relating to assessments and taxes on property of trans-
portation companies (Everett).

Increasing the malt beverage excise tax (McCallum).
Imposing a tax on billiard balls (Davidson).

Reducing the cigarette tax (Mackey, Thompson, A. W.
Wells, Conrad, Hinkle, Bush, Moore, Anderson, McKin-
ney, Freeman, Robert Reid, Sr., Ray, Ratcliffe, Parrish,
Thomas, Gay, Sloan, Breathitt, Day, Williamson, Grundy,
Wilson, Stith, Hislope, Heskamp, Lambert, Saylor, Mc-
Fadden, Mullins, Murphy, Casey, Ockerman, Highland,
Hawkins, Searcy).

Providing for escheats to the state (Morgan).

Changing terms of court in twenty-seventh and forty-sixth
judicial districts (Morgan).

Increasing the excise tax on distilled spirits (Breckinridge).
Raising the maximum rate of school district taxes (Burnley).
Increasing and extending the tax on insurance premiums
(Morgan).

Increasing the malt beverage excise tax (Reynolds).
Authorizing the establishment of state owned liquor stores
(Reynolds, Martin).

Changing the collection date for ad valorem taxes on
distilled spirits and reducing the production tax (Hols-
claw, A. W. Wells, Robert Reid, Sr.).

Increasing the consumption tax on distilled spirits, wine
and beer (Johnson, Blankenship).

Licensing studs (Thomas).

Increasing the pari-mutuel tax (Buchanan).

Levying an excise tax on sand (Davis).

Extending the pari-mutuel tax to non-profit tracks (Tanner,
Lowman, Breathitt, Saylor, Williamson, Hislope, Caudill).
Authorizing the establishment of state owned liquor stores
(Caudill).

Imposing a tax on gravel (Caudill).

Exempting interstate bridges from taxation (Tinsley).
Imposing a tax on pari-mutuel betting at non-profit tracks
(Morgan).

Providing for refund of tax paid on gasoline used in water-
craft (Wathen).

Reducing the state tax on admissions (Everett, Newsom,
Greene).

Regulating the labeling of whiskey (Rayburn).

Requiring school districts to furnish transportation for high
school pupils (Newsom).

19
20

21
22

23
24

25
26
27

28
29

31
32
33

34
35

37
38
39

42
43

Intro-
duced

296
296

296
802

805
805

306
306
306

306
806

806

806
806
306

820
820

820

320
320
332

358

858

379
382

HISTORY OF HOUSE BILLS XxXxix

Reported

360

350
350

360

376

350
350

360

893

Readings Senate Other
1st 2nd 3rd. Message’ Enrolled Action
860 379 384
851 360 380 406 408
856 3860 380 404 406 405
865 3879
876 382
856 860 879 400 400
357 860 387 384
870 379 382 406 406

895

397

INDEX
HISTORY OF HOUSE BILLS

Prohibiting reduction in appropriations for education
(Breckinridge, Young, Mullins, Peace, gerne E Conrad,
Tanner, Robert Reid, Hahn, McFadden, Hawkins, Mac-
key, Heskamp, Cornett, A. W. Wells, Ratcliffe, Wilson,
Bush, Moore, Hislope, Highland, Sloan, Thomas, Ocker-
man, Grendy, Hadden, Heyburn, Anderson, Pollitte,
Wirsch, Hinkle, Blue, Baumgardner, Searcy, Everett, Bil-
lington, Freeman, Martin, Nunn, Carter, Bridgers, Embry,
Gay, Parrish, McCallum, Day, Breathitt, Jennings, Mur-
phy, Ray, Saylor, Flanery, Blankenship, L. B. Wells, D.
W. Howard, Williamson, Melton, Reynolds, V. Reed, H.
V. Reid, Miller).

Intro-
duced

897

HISTORY OF HOUSE BILLS

Readings Senate
2nd

Reported 1st 3rd Message

Enrolled

xii

Other
Action

xii

INDEX

HISTORY OF HOUSE RESOLUTIONS

Numbers refer to page of House Journal. Text of resolution is
given on first reading or adoption. Joint resolutions are designated
HJR; concurrent resolutions are designated HCR.

HR
HAR

HCR
HJR
HCR
HCR
HCR
HR
HJR
HCR
HCR

HCR

HR
HICR

—_

“1 OL

14
15

16
17

18
19

Adopting permanent rules (Morgan).

Notifying the Senate and the Governor that the House is
organized (Morgan).

Petitioning Congress to reduce taxes on tobacco and dis-
tilling industries (Morgan, Burnley).

Making an appropriation to the Legislative Session Fund
(Morgan).

Congratulating the city of Campbellsville (Grundy).
Congratulating the city of Glasgow (Wilson).

Petitioning Congress to reduce federal income tax rates
(Isler).

Petitioning Congress to return a portion of distilled spirits
excise collections to the state (Isler).

Providing for a public referendum on sources of state reve-
nue (Hislope, Caudill).

Requesting the Governor to declare Henry Clay’s birthday
a state holiday (Breckinridge).

Memorializing Congress to construct a bridge over the
Ohio River at Hawesville (Blankenship).

Requesting Congress to allow the states tax credit against
federal withdrawal tax on distilled spirits (Burnley,
Morgan).

Directing a study of state owned liquor stores (Caudill,
Grigsby, Hislope, Bates, Conrad, Billington, Moore, Hil-
ton, Thompson, Martin, Hill, Embry, Stith, Vernon Reed,
Saylor, Wirsch, Gay, Heskamp, Greene, Hadden, Mackey,
Weintraub, Young, Pollitte, Beshear, Hahn).
Commending Clinton L. Smith (Wirsch).

Expressing appreciation to Southern Bell Telephone Com-
pany and employees (Holsclaw, Cottengim, Davidson,
Moore, Farmer, Bridgers, Walsh, Murphy, Young, Bu-
chanan, Embry, Harris, Hahn, Ockerman, Kubale, Hey-
burn, Miller, Blankenship, Rayburn, Newsom, Carter,
Hilton, Everett, Vernon Reed, Greene, Burnley, Gullette).
Amending the rules of the House (Heyburn).

Directing that a detailed statement of General Assembly
expenditures be furnished each member (Heyburn).
Commending Laban Jackson (McCallum, Billington),
Relating to desk name plates for members (Hilton).

HCR

14
15

HISTORY OF HOUSE RESOLUTIONS xliii

Intro-
duced

240
240

254

382

391
891

400

401
403
404

Reported

255

307

Readings

Other

Senate
1st 2nd 3rd Adopted Message Enrolled Action

294 296

807 320 3874

240
24)

360

383

391
392

400

403

400 407
404 406

400
400

323
400
404

401

xliv INDEX
HISTORY OF SENATE BILLS

Numbers refer to page of House Journal. Text of bills is given
on first reading.

SB 2 Restricting annexation of unincorporated areas having an
industrial plant.

SB 3 Providing for property rights of an adopted child.
SB 5 Authorizing free textbooks for indigent high school pupils.
SB 7 Increasing minimum base-period wages for unemploy-

ment compensation, increasing rate and maximum benefits.

SB
SB
SB

“1 Ol Go

HISTORY OF SENATE BILLS

Senate
Message

388

324
387
388

Reported
889

889
393

Readings
Ist 2nd 3rd

890 395 398

389 395 399
893 397 402

Enrolled
403

403
404

xlv

Other
Action

397

398
401

xlvi INDEX
HISTORY OF SENATE RESOLUTIONS

Numbers refer to page of House Journal. Text of resolution
is given on first reading or adoption. Joint resolutions are designated
SJR; concurrent resolutions are designated SCR.

SCR 4 _ Directing a study of establishment of medical clinics.

SCR 8 Directing a study of establishment of dental clinics.

SCR 10 Urging the U. S. government to construct additional
postoffices.

SCR 15 Providing for sine die adjournment on April 27.

SCR 16 Expressing appreciation to Senator Shaikun and Repre-
sentative Buchanan.

HISTORY OF SENATE RESOLUTIONS

Senate
Message

805
824
350

396
396

Reported

360
360

1st

Readings
2nd = 3rd

Adopted Enrolled

871
872

897
896

xlvii

Other
Action

xlviili GENERAL INDEX, FOURTH EXTRAORDINARY SESSION

Adiournment
sine die, SR 15

Admissions
state tax on, reducing, HB 41

Alcoholic beverages
contraband seized in dry territory. disposition of. HB 9
state liquor stores, authorizing establishment of, HB 29, 36

Anderson. Felix S,
Introduced: HB 22, 44

Annexation
industrial sites. limiting annexation powers in regard to, HB 5; SB 2
ordinances, publishing of by sixth class city, HB 16

Avvropriations
Devartment of Revenue, HB 7
education. prohibiting reduction of state appropriations for, HB 44
Legislative Session Fund, HR 4

Barnum. Clarence J.
Introduced: HB 8

Bates, Clarence H.
Introduced: HB 9; HR 13

Baumgardner, Charles E.
Introduced: HB 44

Beshear, Fred
Introduced: HR 13

Billington, Owen
Introduced: HB 44; HR 13, 18

Blankenship, R.
Introduced: a 31, 44; HR 11, 15

Blue, J. Murray
Introduced: HB 44

Breathitt, Edward T., Jr.
Introduced: HB 8, 22, 35, 44

Breckinridge, John B.
Introduced: HB 25, 44; HR 10

Bridgers, Edward O.
Introduced: HB 8, 44; HR 15

Bridges
bridge over Ohio River at Hawesville, memorializing Congress to
construct, HR 11 .
interstate bridges, exempting from taxation, HB 38

Buchanan, C. W.
Introduced: HB 8, 33, 35; HR 15

Burnley, Charles W.
Introduced: HB 26; HR 12, 15

Bush, Floyd
Introduced: HB 22, 44

Carter, Earl
Introduced: HB 44; HR 15

Casey, D. C., Jr.
Introduced: HB 8, 22

GENERAL INDEX, FOURTH EXTRAORDINARY SESSION xlix

Caudill, Harry M.
Introduced: HB 8, 17, 35, 36, 37; HR 9, 13

Children
adopted, claim against estate of ancestor, SB 3
free textbooks, providing for indigent children, SB 5

Cigarettes
state tax, reducing, HB 22

Circuit courts
terms of court, changing, HB 24

Cities
annexation ordinance, publishing of in sixth class city, HB 16
assessment of intangibles, transferring to state, HB 2
contraband alcoholic beverages, disposition of, HB 9
distilled spirits ad valorem tax, assessing and collecting of, HB 30
industrial sites, limiting annexation of, HB 5; SB 2

Civil practice
escheats to state, specifying procedures for, HB 23

Commendation and appreciation, resolutions of
city of Campbellsville, HR 5
city of Glasgow, HR 6
Commissioner of Conservation Laban Jackson, HR 18
Representative Buchanan, SR 16
Senator Shaikun, SR 16
Smith, Clinton L., HR 14
Southern Bell Telephone Company, HR 15

Conrad, Charles L.
Introduced: HB 22, 44; HR 13

Cornett, Bill
Introduced: HB 8, 44

Cottengim, Vernor —
Introduced: HB 12, 13, 15; HR 15

Counties
assessment of intangibles, transferring to state, HB 2
contraband alcoholic beverages, disposition of, HB 9
distilled spirits ad valorem tax, assessing and collecting of, HB 30

County clerk
deeds, collecting of taxes on, HB 3

Davidson, B. G.
Introduced: HB 14, 21; HR 15

Davis, Roy C.
Introduced: HB 34

Day, John L.
Introduced: HB 16, 22, 44

Deeds
state tax on, levying, HB 3

Distilled spirits
ad valorem taxes on, assessing and collecting of, HB 30
age and quality claims, regulating, HB 42
consumption tax, increasing, HB 31 :
credit of federal taxes collected, petitioning Congress to allow, HR 8, 12
excise tax, increasing, HB 25
reduction of federal taxes, petitioning Congress for, HR 3
state production tax, decreasing, HB 15 ;

1 GENERAL INDEX, FOURTH EXTRAORDINARY SESSION

Dunsil, John
Introduced: HB 8

Education
distilled spirits ad valorem tax, assessing and collecting of, HB 30
local tax rate, increasing maximum, HB 26
state appropriations for, prohibiting reduction in event of budget
deficit, HB 44
textbooks, providing for indigent children, SB 5
Pen sparanon) requiring mandatory extension to high school pupils,
43

Embry, Edward
Introduced: HB 8, 44; HR 13, 15

Escheats
adopted child, giving preference over state for property of ancestor,
SB 3

property classes concerned; procedure for, HB 23

Everett, Addison L.
Introduced: HB 19, 41, 44; HR 15

Farmer, John W.
Introduced: HR 15

Flanery, W. J.
Introduced: HB 44

Freeman, Edwin
Introduced: HB 8, 11, 22, 44

Gay, Clay
Introduced: HB 22, 44; HR 13

General Assembly
adjournment, SR 15
adopting permanent rules, HR 1
committee to confer on HB 3 and HB 23, p. 409
committee to notify Senate and Governor of organization, HR 2, p. 241
desk plates of members, directing study of most appropriate, HR 19
expenditures to members, directing statement covering, HR 17
Legislative Session Fund, making appropriation to, HR 4
tax measures, motion for hearings on, p. 302

Governor
address to General Assembly, pp. 241, 324
committee to wait on, pp. 241, 410
proclamation convening session, p. 239
supplemental proclamation, p. 303

Greene, John W.
Introduced: HB 41; HR 13, 15
Griffin, R. S.
Introduced: HB 8
Grigsby, Roy Hurst, Jr.
Introduced: HB 10; HR 13

Grundy, James C., Jr.
Introduced: HB 22, 35, 44; HR 5

Gullette, Robert L.
Introduced: HR 15

Hadden, W. L.
Introduced: HB 8, 35, 44; HR 13

Hahn, James P.
Introduced: HB 8, 35, 44; HR 13, 15

GENERAL INDEX, FOURTH EXTRAORDINARY SESSION li

Harris, George F.
Introduced: HR 15

Hawkins, Emmett
Introduced: HB 22, 44

Health
dental clinics, directing study of establishment, SR 8
medical clinics, directing study of establishment, SR 4

Heskamp, David
Introduced: HB 22, 44; HR 13

Heyburn, Henry R.
Introduced: HB 8, 44; HR 15, 16, 17

Highland, Charles D.
Introduced: HB 8, 22, 44

Hill, Lon C.
Introduced: HR 13

Hilton, E. R.
Introduced: HB 18; HR 13, 15, 19

Hinkle, Brooks
Introduced: HB 22, 44

Hislope, Leonard
Introduced: HB 8, 22, 35, 44; HR 9, 13

Holidays F
Henry Clay’s birthday, requesting Governor to declare a state holi-
day, HR 10

Holsclaw, Chester J.
Introduced: HB 30; HR 15

Howard, Durham W.
Introduced: HB 8, 44

Income
corporation and individual, increasing state income tax, HB 1
federal income tax, petitioning Congress to reduce, HR 7
gross income, imposing tax on, HB 13

Industrial sites
annexation of, limiting, HB 5; SB 2

Isler, John J.
Introduced: HR 7, 8

Jennings, Lynn A.
Introduced: HB 8, 44

Johnson, Jack
Introduced: HB 31

Kubale, Ed, Jr.,
Introduced: HR 15

Lambert, James W.
Introduced: HB 8, 22

Insurance .
premiums, increasing and extending tax on, transferring collection to
Department of Revenue, HB 27

Legislative Research Commission
expenditures to members of General Assembly, directing statement
covering, HR 17
studies directed:
dental clinics, SR 8
medical clinics, SR 4
state liquor stores, HR 13

lii GENERAL INDEX, FOURTH EXTRAORDINARY SESSION

Lowman, Harry King
Introduced: HB 8, 35

Mackey. True
Introduced: HB 8, 22, 44; HR 13

Malt beverages
consumption tax, increasing, HB 31
state tax on, increasing, HB 20, 28

Martin, David, Jr.
Introduced: HB 8, 29, 44; HR 13

McCallum, Shelby
Introduced: HB 8, 20, 44; HR 18

McFadden, Caleb
Introduced: HB 8, 22, 44

McKinney, Pearl
Introduced: HB 8, 22, 44

Melton, Carl D.
Introduced: HB 44

Miller, Clarence R.
Introduced: HB 8, 44; HR 15

Moore, Alton
Introduced: HB 22, 44; HR 13, 15

Morgan, Fred H
Introduced: HB 1, 2, 3, 4, 5, 6, 7, 23, 24, 27, 39; HR 1, 2, 3, 4, 12

Mullins, E. C.
Introduced: HB 8, 22, 44

Murphy, Thomas J.
Introduced: HB 8, 22, 44; HR 15

Newsom, Goebel W., Jr.
Introduced: HB 41, 43; HR 15

Nunn, Joe E.
Introduced: HB 8, 44

Ockerman, Foster
Introduced: HB 22, 44; HR 15

Parrish, Jerry
Introduced: HB 22, 44

Peace, Will K.
Introduced: HB 8, 44

Petitions and memorials

to Congress for:
bridge across Ohio River at Hawesville, HR 11
reduction of federal income taxes, HR 7
tax oe for federal distilled spirits taxes collected in the state,

HR 8,1

tax reduction on tobacco and distilling industries, HR 3

to federal government urging construction of post offices, SR 10

Pollitte, E. D.
Introduced: HB 8, 44; HR 13

Proclamation of Governor
subjects embraced, pp. 239, 303

Property
distilled spirits ad valorem tax, assessing and collecting of, HB 30
intangibles, raising tax rates, transferring assessment to state, HB 2
school tax levy, increasing maximum, HB 26
transportation companies, assessment and collection of taxes on oper-
ating tangible property of, HB 19

GENERAL INDEX, FOURTH EXTRAORDINARY SESSION iiii

Racing
par mute betting at non-profit tracks, imposing tax on, HB 8,
10, 35, 39
pari-mutuel tax, raising rates; earmarking proceeds, HB 10, 18, 33

Ratcliffe, Paul E.
Introduced: HB 8, 22, 44

Ray, Thomas L.
Introduced: HB 22, 44

Rayburn, Hobart
Introduced: HB 42; HR 15

Reed, Vernon
Introduced: HB 44; HR 13, 15

Reid, Howard V.
Introduced: HB 44

Reid, Robert, Sr.
Introduced: HB 8, 22, 30, 44

Revenue, Department of
gross income tax, collection and enforcement of, HB 13
insurance, transferring collection of premium tax to department, HB 27
intangibles, transferring assessment to department, HB 2
me lodgings and rentals, collection and enforcement of tax on,
new revenue laws, making appropriation for administration of, HB 7
sales tax, collection and enforcement of, HB 11
state income tax, administration of, HB 1
menenorauien companies, assessing operating tangible property of,

Reynolds, Russell C.
Introduced: HB 8, 28, 29, 35, 44

Rules, House
adopted, p. 240
amending in regard to distribution of printed matter, HR 16

Sales
general sales tax, imposing, HB 11
gross income, imposing tax on, HB 13
meals, lodgings and rentals, imposing tax on, HB 12, 17
state liquor stores, authorizing, HB 29, 36

Sand and gravel
levying tax on sales of, HB 34, 37

Saylor, LeRoy
Introduced: HB 8, 22, 35, 44; HR 13

Searcy, Roy E
Introduced: HB 22, 44

Secretary of State
proclamation of Governor, certification of, pp. 238, 303

Sloan, Hansford
Introduced: HB 8, 22, 44

Stith, Ralph O.
Introduced: HB 22; HR 13

Tanner, Patrick
Introduced: HB 35, 44
statement of position on budget, p. 304

liv GENERAL INDEX, FOURTH EXTRAORDINARY SESSION

Taxation and revenue

admissions, reducing state tax on, HB 41

cigarettes, reducing state tax on, HB 22

deeds, levying tax on, HB 3

distilled spirits, decreasing state production tax on, HB 15

distilled spirits, increasing excise tax on, HB 25

distilled spirits, wine and beer, increasing consumption tax, HB 31

distilled spirits ad valorem tax, assessing and collecting of, HB 30

distilled spirits taxes to federal government, petitioning Congress to
allow credits to state, HR 8, 12

escheats to state, HB 23

federal income taxes, petitioning Congress to reduce, HR 7

federal taxes on distilling and tobacco industries, petitioning Congress
to reduce, HR 3

general sales tax, imposing, HB 11

gross income, imposing tax on basis of, HB 13

income tax, corporation, raising rates, HB 1

income tax, individual, decreasing credits, imposing surtax, changing
definitions, HB 1

insurance premiums, increasing and extending state tax on, HB 27

intangible property, raising tax rates, transferring assessment to state,

interstate bridges, exempting from taxation, HB 38

malt beverages, increasing tax on, HB 20, 28

meals, lodgings and rentals, imposing tax on, HB 12, 17

pari-mutuel betting at non-profit tracks, imposing tax on, HB 8, 10,
pari-mutuel tax, raising rates; earmarking proceeds, HB 10, 18, 33
pool balls, imposing tax on, HB 14, 21

sand and gravel, levying tax on sales of, HB 34, 37

school tax rate, increasing maximum, HB 26

services of animals, licensing, HB 32

state liquor stores, authorizing, HB 29, 36

tax program, providing for popular referendum on, HB 9

trading stamps, levying graduated tax on, HB 4

transportation companies, assessment and taxes on property of, HB 19
watercraft, providing for refund of gasoline taxes, HB 40

Thomas, Ed
Introduced: HB 8, 22, 32, 44

Thompson, Rodney J.
Introduced: HB 22; HR 13

Tinsley, T. Herbert
Introduced: HB 38

Tobacco
cigarettes, reducing state tax on, HB 22
reduction of federal taxes, petitioning Congress for, HR 3

Trade practices
trading stamps, taxing of, HB 4 ;
whiskey, regulating age and quality claims concerning, HB 42

Trading stamps

tax, imposing on graduated basis, HB 4
Transportation companies

assessments and taxes on property of, HB 19

Unemployment compensation . :
benefits and minimum base-period wages, increasing, SB 7
trust fund, collection and withdrawals, administration of, HB 6

Walsh, Eulick
Introduced: HR 15

Watercraft
gasoline, providing for refund of taxes on, HB 40

GENERAL INDEX, FOURTH EXTRAORDINARY SESSION

Wathen, Will Tom
Introduced: HB 40

Weintraub, Morris
Introduced: HR 13

Wells, A. W.
Introduced: HB 8, 22, 30, 44

Wells, Lynn B.
Introduced: HB 44

Williamson, George F.
Introduced: HB 8, 22, 35, 44

Wilson, Mrs. Randolph

Introduced: HB 8, 22, 44; HR 6
Wine

consumption tax, increasing, HB 31

Wirsch, Charles W.
Introduced: HB 8, 44; HR 13, 14

Young, Paul E.
Introduced: HB 44; HR 13, 15

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Full text of "Journal of the House of Representatives of the Commonwealth of Kentucky, 1956, Extraordinary Session"

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